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US Government Still Trying to Protect Home Prices

US Government Still Trying to Protect Home Prices
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Due to the request and needs of most people the federal government took the action and cut the interest rates on different housing loan schemes. Since the two rates are not considering tied together you cannot think that the mortgage rates haven fallen down. The rates are adjusted by the government thirteen times in six months and five to eight times in different periods of the year. When the price on mortgages does not go down even after the cut rates applied by the government the consumers who are not generally well aware with the mortgage rates tend to get doubtful lenders. The simple rule which is applied on the mortgage rates is that the price goes less or higher with respect to the long-term inflation. When the investors feel that the inflation seems to be rising they get rise in mortgage rates as well.

In the mid of July last year, it was stated by Bankrate.com that the average fixed rate on thirty year mortgage was around 6.82%. However, when you move further you will notice a drop of 6.32% in the month of September. It is just a coincidence that these rates mirror the half point reduction that the federal government just put into the mortgage market but every lender knows that these rates depend only on America’s natural market forces. The cut rates by federal government decline consumer’s interest rates as well within the economy. Moreover, the federal government is still trying to stop the fall in the housing prices in most cities of the country.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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