I don't know how many of you know I do Mortgage Loans for a living. In December I consulted my lock in department about the market trend. They indicated that the Feds might lower the prime interest rate after January. So far... no go. I was hoping to refinance my home.
I was having a conversation with my manager and she said that unemployment was too low and the job market too good to lower rates. For those of you that don't know...the subprime market is falling apart. Those are your stated income loans, poor credit, and arm products.
The way I see it, is the Government set us up for the fall. Lower the rates when no one has a job to actually pay their mortgage, get them a mortgage with the low rate on a stated income loan with an adjustable rat, then kill them by increasing the rate b/c the job market improves.
And at the same time, the job market improves, so the government then makes it impossible for the people who have jobs to get a home by raising the rates and causing the subprime market to fall apart making it hard for people to get into a home with out large amounts of money to put down.
I guess it doesn't effect the law makers that much b/c they already have deep pockets to begin with.
Oh and now...let's do away with the child tax credit and the child care credit and further penalize hard working families in America, just trying to provide a stable home and life for themselves.