[org.whodat]

LOL, you need to spend a little more time with that eco 101 book. You failed the course the first time.

[Freedom_Is_Not_Free]

I didn’t take Econ 101. Explain what you mean or STFU.

[4Liberty]

Finally, the price (interest) is beginning to reflect the actual risk premium, again.

And this is a GOOD thing - for taxpayers.

Freedom_Is_Not_Free, you are right, the price of the loan will hurt home sales, since these two goods are “Complements” (mortgages & homes).

But the problem isn’t the interest rate, it’s the price controls (ceilings) on interest that govt. originally introduced to “help” those who really could not afford a house pay the loans, that caused the spur in building boom - and housing glut we have today.

The price will REMAIN depressed until real demand - by people who can actually AFFORD to pay for mortgages - catches up with all these extra homes (supply we have).

I hope this helps.
I teach Econ 101 BTW.
(:
4L