The fate of the 30-year mortgage has been questioned in recent years, but an article in Bloomberg takes a look back at how the product saved the housing market.
Before the 30-year emerged, banks mostly gave balloon loans with terms of just three to five years. However, after the stock-market crash of 1929, investors stopped buying mortgage bonds, the article says.
In order to get the economy to start flowing again, former president Franklin D. Roosevelt pushed for a national mortgage market.
Mortgage amortization, as such a plan was called, eradicated the need for refinancing, which made the balloon mortgages so precarious. A long period made the mortgages independent of short-term fluctuations in the economy. Borrowers wouldn’t have to weather both unemployment and refinancing at the same time.
Just back out of hospital in early March for home recovery. Therapist coming today.
Sales fell 5.9% from September and 28.4% from one year ago.
Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.43 million units in…
OneKey MLS reported a regional closed median sale price of $585,000, representing a 2.50% decrease…
The prices of building materials decreased 0.2% in October
Mortgage rates went from 7.37% yesterday to 6.67% as of this writing.
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