Mortgage News Brief

Our government is supporting a basically insolvent mortgage banking system. Because of the relatively low number of home sales that have generated losses, the outstanding national mortgage debt has not changed much. The problem is that home values backing these mortgages have dropped substantially.

Banks have been unloading toxic mortgages onto the government, who is supporting home prices with the hope of managing the mortgage market long enough that the losses will not engulf the system before the real estate market rebounds. Hopefully, these efforts to stabilize housing will not create a second price bubble.

Mortgage Loan Rates