Also in the “good analysis” there is a statement in there that says, foreclosures cause lenders to raise rates.
So I will state again… and again… long term interest rates for mortgages are not based on the prime rate set by the fed… they are not based on the amount of foreclosures… they are not based on whether the moon is made of swiss or cheddar cheese…they are based on the bond yield…
The lending standards may tighten up… and other factors that the underwriters use may indeed make it harder for people to get loans…
However again, the supposed “good analysis” had a fault in it at which point I stopped reading.
