Tag Archives: high interest rates

Freddie Mac Bets Against Homeowners

When the government owns or controls more of the economy, different parts of the government start working against each other. Freddie Mac has an incentive to reduce its losses and its taxpayer bailouts. The wider economy has an interest in … Continue reading

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Housing Starts Suffer Biggest Drop Since 1984

We had high interest rates back in 1984, more than ten points higher than today’s interest rates. Yet few people want to construct new housing because of the massive oversupply across America. Reuters reports: Housing starts posted their biggest decline … Continue reading

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The Return Of Credit Card Offers

After three years of dramatically reining in their offers of credit cards, banks and other lenders are back in the game, says a big article in the New York Times this past weekend. Lenders are more careful than ever. They … Continue reading

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The Return Of Credit AKA Risky Lending

Credit card companies are sending out offers again. And not just to people with primo credit. Folks with mediocre credit, however, will have to deal with annual fees and higher interest rates. Borrowers are getting classified more carefully. Lenders have … Continue reading

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The Root of the Credit Crunch

Martin Feldstein writes: It must address the fundamental cause of the crisis: the downward spiral of house prices that devastates household wealth and destroys the capital of financial institutions that hold mortgages and mortgage-backed securities. Because of the 20% fall … Continue reading

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There’s No Easy Solution To The Complicated Credit Mess

Steven Pearlstine writes: • Raise the limit on deposit insurance. The government had to rescue three large banks in recent weeks after large depositors — businesses and investment funds — began withdrawing money, raising fears of runs on other banks. … Continue reading

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Mortgage Lending Down In 2007

From DSNews.com: The Federal Reserve released its comprehensive report on banks’ 2007 lending practices last week, showing that overall mortgage lending dropped sharply. Deteriorating loan performance and widespread declines in home values led to a sharp contraction in the willingness … Continue reading

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Foreclosure In Texas

From Texas: Within months, many find themselves facing foreclosure, saddled with high interest rates on loans for thousands of dollars more than their homes are worth. Many were first-time home buyers without the financial advantages of good credit. Victor and … Continue reading

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What Is Subprime Lending?

From wikipedia: In general, subprime lending (also known as B-paper, near-prime, or second chance lending) is lending at a higher rate than the prime rate. However, in US mortgage lending specifically, the term "subprime" simply refers to loans that do … Continue reading

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West Australians Hard Hit By Mortgage Crisis

It’s the worst place in Australia as far as mortgage stress goes. Gas prices are up. Food prices are up. Interest rates are up. Wages not so much. Here’s a report: West Australians are scrambling to refinance their mortgages as … Continue reading

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