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Why aren't interest rates going down?

By
Real Estate Broker/Owner

You would think that with the economy in shambles, with jobs being lost, companies going under and the demand for mortgage money going down, interest rates would follow the same rules as supply and demand.  With the lack of demand, banks should be lowering rates to create demand.  But this is not the case.  Rates are actually going up.  The banks have something that the normal business doesn't have. That is a monoply on the money that is loaned in America.   Of course, many people and for sure banks would say that there is great diversity in lending, but since we as individuals can't go to the Fannie Mae lending window, we are shut out of low interest money.  

It is a shame that the banks couldn't see that lowering rates would at least make them look less greedy, considering they are borrowing money from the taxpayer at little or no cost.

Where is the outrage?  Where is congress?  Where is the NAR?

 

 

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Comments(1)

Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru

Dale, I wish that the lenders and banks had the ability to just cut rates when they want. But, bottom line is, rates are not governed that way.

Nov 20, 2008 04:49 AM