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Unformatted text preview: Reserve is the main agency that controls this. The Federal Reserve controls policies to control the amount of cash in circulation, they look to find a happy median to help regulate the economy. By controlling cash flow, the Federal Reserve in turn controls mortgage rates, because if mortgage rates are raised then less people will buy houses, lower mortgage rates will promote home buying. The government can affect the housing market and everything that goes along with it by doing several different things. When the government borrows money from the public, it will change the market. From what I have found, there is no real policy or law in affect that allows the government to change the housing market, changes in the market are usually just the product of several different policies interacting with eachother....
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- Winter '11