Krugman: Mortgage Rates Still Too High
Despite having come down considerably in recent weeks, mortgage rates are still too high, says Paul Krugman in a recent blog post. Why too high? Well, the spread between 30-year mortgages and 10-year Treasurys historically is around 150 basis points. And now? About 300 bips. Krugman’s prescription: “Declare that Fannie and Freddie are backed by…
Despite having come down considerably in recent weeks, mortgage rates are still too high, says Paul Krugman in a recent blog post. Why too high? Well, the spread between 30-year mortgages and 10-year Treasurys historically is around 150 basis points. And now? About 300 bips. Krugman’s prescription: “Declare that Fannie and Freddie are backed by full faith and credit, and if that doesn’t work, have the Treasury borrow on their behalf.”
Was it not low interest rates that got us into this trouble?. The news says people are not buying homes even with rates at 5 percent! Well Hello. Lower interest rates means the price of homes should be going up and if that is not happening something must be wrong. Like a drunk econemy with cooked numbers. I say we put Madoff at head of the Federal Reserve.
Actually for three of the last 4 years Senator Clinton had higher visibility. I could go on finding fault in your, let’s be charitable and call it, reasoning IronBalls but logic and realism clearly won’t change your innate biases.
And, as someone once said, it’s foolish to engage in a battle of wits with an unarmed person.
Obama didn’t “inherit” this economy.
He’s been a freaking senator for the last four years — in fact the most famous one.
He’s done zip, zero, zilch to help in the last four years, along with his fellow Democrat majority congress, and his agenda is about to lead us into our second Great Depression.
No real reason to debate anymore — we’ll all live it in 2009.
We said reflected for a reason but if you don’t get it why not look up the actual data yourself. We refer to the various labor dept statistics that will show you more job creation and better incomes during those 8 years….do the homework for yourself.
Its priceless being a de-facto Clinton spokesperson.
“the facts speak for themselves as reflected in the majority of Americans opinion”
Priceless statement!! Facts are now confirmed by polls!!!!
Benson you are the only one who has complained about the “we” statements. It is in fact a real banal remark and plain petty but hey some folks need to complain.
Anyway we agree no need for the back and forth about the Clinton years being relatively peaceful and prosperous…the facts speak for themselves as reflected in the majority of Americans opinion.
See we all own million dollar homes and no one can afford to buy them. See what you smart real estate prokers did. We can afford to rent or own in New York. Now what we all move to Jersey. Viva gentrafication I say it was greedy speculating. I say let the homes go for .99 ents a square foot.
nice post
I think we all believe that treasuries are overinflated and that is why we are mostly looking to short these securities. PST, TBT are two you can use. As for me, I will again look for undervalued homes, I see a huge wave of them coming and since I am mostly cash now is time for the buying. Dave when I spoke about 300k homes i spoke about 2 family homes in Jersey City, that get rents in the 1200-1500 per apt range. And if these people get layed off I will get section 8 people. At one point you see the government printing and printing and you have to start buying assets that will have value. I take homes in decent areas with good rent rolls over mostly anything. Especially since the interest rates are 4.7 for these homes. Of course these are homes that at one time were selling for 600k-750 k. I friend just purchased a home in a decent area for 225k, the past selling price onthis home was 500k. I will buy and not worry about what is next since I am buying with the banks money…. People the treasury market may have a bubble but bubbles usually last alot longer than most ever believe they will. Good luck and im off to short hills mall to do some shopping…