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Unformatted text preview: A New House – Risks and Benefits The government bodies that influence the national fiscal policies that potentially affect the housing market are the Federal Reserve. This body decides the rise and fall of interest rates. If the rate decreases, more money is introduced into the economy. The interest rates to decrease and therefore increase the demand for the housing market and then solidifies the prices of homes. And if the rate increases, less money goes into the economy and interest rates will increase and the demand for houses will fall. One more government body that will influence the national fiscal’s policies is The Department of Treasury. The Home Affordable Refinance program was introduced by The Department of Treasury in 2009 to help homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. These home owners were able to refinance their home loans and take advantage of today’s lower mortgage rates. There are many national fiscal policies that can affect the mortgage rates, housing starts, and...
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This note was uploaded on 05/29/2011 for the course POS 110 taught by Professor Britt,j during the Spring '10 term at University of Phoenix.
- Spring '10