2% home loans and 6% credit cards would slow inflation.this would make a 100,000 dollar home cost around 450 a month .WOULD this create more home building and a better standard of living for all americans .why do we pay triple the cost of a home when the security of home ownership makes america stronger and more stable.RENTERS it seems abuse the property move frequently uprooting children from schools and in the process cause more harm then good.
2006-07-13 03:22:47 · 3 answers · asked by playtoofast 6 in Politics & Government ➔ Politics
Go talk to the treasury secretary and the people at the federal reserve. banks don't make up their own interest rate. It all depends on the economy, stock market, etc.
2006-07-13 03:26:51 · answer #1 · answered by casey_leftwich 5 · 0⤊ 1⤋
Actually, lower interest rates cause inflation (according to modern economic theory). What happens is that everybody wants everthing NOW are willing to go into debt to get it.
The result is only the people with the most money can buy what they want. I sold a house about 8 years ago for $200,000. It was recently resold for $500,000. That was because low mortgage rates have driven up the price of real estate at about 20% per year.
That may be good for the owners, but not for the buyers.
2006-07-13 04:16:24 · answer #2 · answered by SPLATT 7 · 0⤊ 0⤋
It is neither homeowners nor renters that destroy homes, it is people. It is a mental disorder called stupidity. Although your idea holds some merit, it will do absolutely nothing to change the mentality of people. They will default on a 2% loan as fast as they will on a 10% loan. You just open the avenue and make it easier. Sorry, feeling a little negative today. Must be the humidity.
2006-07-13 03:33:25 · answer #3 · answered by johngjordan 3 · 0⤊ 0⤋