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interest rates should reflect inflation, risk, demand and liquidity.
we are in a delationary period which calls for lower interest rates.
forcing 20% down payment, verifying credit scores/incomes reduces the risk which calls for lower interest rates.
demand is low which means lower interest rates
liquidity is high. banks have the money. of course they do not want to make bad loans.
it looks like unless something changes interest rates will be low.
the only dark cloud is this clamor for loan modification programs and forclosure mitigation. i hope most of it is pre-election rhetoric.
