Mortgage Rates Still High After Subprime Mortgage Crisis
Mortgage rates are stubbornly refusing to fall in the wake of the subprime mortgage crisis, despite countless state and federal initiatives intended to lower rates. The Federal Reserve has drastically reduced interest rates, and there are countless homes across America which are available for sale, many at foreclosure prices. Yet, lenders are still wary. The Chicago Tribune says that the hovering interest rates “defy conventional wisdom.”
The article claims that interest rates are still too high for newer home buyers, and even those looking to move into something a little more accommodating for their families. Because of their stubborn refusal to fall to normal recovery levels, high interest rates are exacerbating the economic stagnation, as the remaining lenders who didn’t succumb to the subprime mortgage crisis refuse to loan money.
All the big companies predicted that the credit crisis would long be over by now. Morgan Stanley and Goldman Sachs both used sport’s analogies to imply that we were witnessing the final stretch (if I may) of the disaster. Yet, here we are, still in post-crisis limbo. Time may be the only medicine for our economy’s gaping wounds, but don’t expect that to console America’s former homeowners.
If you are tired of hearing about the subprime mortgages crisis and would rather read something interested about the cause of the whole mess, read this scathing opinion.
