Re:The Fed now owns nearly 1/3 of all U.S. mortgages
by JMTQp8lwXL on Wednesday September 09, 2020 @03:55PM
(#24425213)
If interest rates can't go any lower (and there isn't much room, unless we think negative yield mortgages are possible), and the Fed chooses to inflate the currency (which I concur, would be a most likely response, as the alternatives have far worse consequences), then the real value of homes will decline-- though the nominal dollar value could stay the same.
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Re:The Fed now owns nearly 1/3 of all U.S. mortgages
by RestlessMind on Wednesday September 09, 2020 @07:17PM
(#24427075)
> and there isn't much room, unless we think negative yield mortgages are possible
Negative mortgage rates are of course possible - they happened in Denmark, for example: https://www.cnbc.com/2019/08/12/danish-bank-is-offering-10-y...
Re:The Fed now owns nearly 1/3 of all U.S. mortgages
by JMTQp8lwXL on Thursday September 10, 2020 @12:53AM
(#24428997)
To clarify, negative after fees. The Danish mortgages are not negative after fees. The question is, could we cross that line? Then the bank wouldn't be making any money on the loan.