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A comment on Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse. Parent comment

Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by izzydata on Tuesday March 21, 2023 @10:31AM (#35246716)
Probably by not giving people loans for houses, which would make them equally unaffordable for people, but in a different way.

A 400k house might instead be a 200k house, but you will never have 200k in cash compared to 20k for a down payment on a mortgage.

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by triceratops on Tuesday March 21, 2023 @10:42AM (#35246900)
Moneylenders have always existed when legal.
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by richjdsmith on Tuesday March 21, 2023 @10:49AM (#35246993)
There would absolutely still be mortgage lenders without artificially low federal funds.

I manage a fund in Canada that does exactly that. We have a pool of investors, and lend out on mortgages only. Primarily in markets larger institutions won’t touch.

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by JumpCrisscross on Tuesday March 21, 2023 @10:56AM (#35247115)
> would absolutely still be mortgage lenders without artificially low federal funds

30-year fixed-rate mortgages for middle earners are a policy creation, not a natural market creature.

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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by liketochill on Tuesday March 21, 2023 @11:09AM (#35247309)
30 year fixed rate mortgages aren’t available in Canada. Most have the interest rate adjusted every 3-5 years
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by JumpCrisscross on Tuesday March 21, 2023 @11:10AM (#35247330)
That’s my point. There is no natural market for 30-year fixed-rate mortgages to the middle class.
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse by cudgy on Wednesday March 22, 2023 @04:51AM (#35258467)
Hard to argue that a 50% price reduction is less affordable. Ever heard of owner-financing?
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