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Unformatted text preview: CheckPoint Week 5 A New House-Risks and Benefits The government bodies that most influence national fiscal policies that affect the housing market are the Federal Reserve System (FED), Housing and Urban Development (HUD), Farmers Home Association (FHA), FEMA, and DHS. Purchasing a home right now is a very good idea in terms of low interest rates being at an all-time low for the past several years and the overall prices of homes have dropped due to the failing economy. The housing market is failing and banks are desperate to get responsible loans to offset recent bad activity on their books due to foreclosures in recent years. It is a really good time to invest and buy as much delinquent or failed mortgages that the lenders have due to fiscal losses. Federal banks are able to make decisions in regard to fiscal policy, which include the options to increase or decrease interest rates. These decisions tend to affect mortgage rates and housing prices. The lower interest rates make it easier for more people to buy or build homes. The reason prices....
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This note was uploaded on 02/28/2012 for the course ECONOMICS XECO 212 taught by Professor Tsilis during the Spring '09 term at University of Phoenix.
- Spring '09