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So basically because mortgage lenders didn't increase their loan limits from 06 to 16, house prices didn't move up during this period and after 2016 lenders started increasing loan size and therefore lead to increased house prices?
Alright, coming through loud and clear 👍. "The base loan limits remained unchanged from their 2006 levels though 2016. With home prices recovering quickly, the conforming loan limits rose measurably in 2017 through 2022..." "Fannie and Freddie's loan purchase limits are also usually set by a formula based upon the change in home prices from October to October, certain changes were made back in March 2008 to allow them to "temporarily" buy mortgages well above these traditional limits.
Loans originated on or after October 1, 2011 use the "permanent" high-cost area loan limits established by FHFA under a formula of 115% of the area's median home price"
This is kinda interesting, seems like they didn't pin it at417 more like the market didn't recover past that mark until 2017. If they change their formula and just left it at 417 the prices probably would t have moved up all that much. It's like the Fed and interest rates...
(Saint , youre an Anon here so I may use hyperbolic language but if you weren’t an Anon and we were personally acquainted i certainly wouldn’t use such disrespectful language)
hy·per·bo·le /hīˈpərbəlē/ noun exaggerated statements or claims not meant to be taken literally.
Right exactly… you have people out there today who think the reason UST rates are higher is because the “government is borrowing a lot more money.!”…
Meanwhile Biden had his CB increase the risk free rate in unprecedented fashion from 0.1% to 5.5% in a year.. and all functional equations in finance use that risk free rate as an input variable..,
Meanwhile these Art degree morons are going all around saying the Chinese are loan sharking and charging us more interest…
The main problem is the academic practice that allows this type of thing to occur… which is the platonism/liberal Art methodology… it’s no bueno..,
10 comments:
Please explain more.
Those are the conforming loan LIMITS for GSE mortgages for single family homes over the Obama years…
Kept them fixed at 417 the whole time and the price of housing didn’t increase…,
So basically because mortgage lenders didn't increase their loan limits from 06 to 16, house prices didn't move up during this period and after 2016 lenders started increasing loan size and therefore lead to increased house prices?
Yes why would anyone think otherwise?
Answer: “Plato”
ie art degree morons
Euthanize the Art degree morons and all this goes away..
The core problem is academic practice..,
Keynes: “Euthanize the rentier”
No… that’s not what you euthanize if you are going to euthanize something..,
You euthanize the the Art degree people..,
Which would include Keynes..,
“ So basically because mortgage lenders didn't increase their loan limits”
No dumb fuck.. it’s not “mortgage lenders!” You left wing pos Art degree dumb fuck .., it’s the fucking GOVERNMENT..
MMT: “ALL PRICES are necessarily a function of what the government pays for things and WHAT THE GOVERNMENT ALLOWS THEIR BANKS TO LEND AGAINST THINGS ”
How hard is that thesis to understand?
That Art degree thesis is verified by Science..,
Alright, coming through loud and clear 👍.
"The base loan limits remained unchanged from their 2006 levels though 2016. With home prices recovering quickly, the conforming loan limits rose measurably in 2017 through 2022..."
"Fannie and Freddie's loan purchase limits are also usually set by a formula based upon the change in home prices from October to October, certain changes were made back in March 2008 to allow them to "temporarily" buy mortgages well above these traditional limits.
Loans originated on or after October 1, 2011 use the "permanent" high-cost area loan limits established by FHFA under a formula of 115% of the area's median home price"
This is kinda interesting, seems like they didn't pin it at417 more like the market didn't recover past that mark until 2017. If they change their formula and just left it at 417 the prices probably would t have moved up all that much. It's like the Fed and interest rates...
(Saint , youre an Anon here so I may use hyperbolic language but if you weren’t an Anon and we were personally acquainted i certainly wouldn’t use such disrespectful language)
hy·per·bo·le
/hīˈpərbəlē/
noun
exaggerated statements or claims not meant to be taken literally.
“ It's like the Fed and interest rates...”
Right exactly… you have people out there today who think the reason UST rates are higher is because the “government is borrowing a lot more money.!”…
Meanwhile Biden had his CB increase the risk free rate in unprecedented fashion from 0.1% to 5.5% in a year.. and all functional equations in finance use that risk free rate as an input variable..,
Meanwhile these Art degree morons are going all around saying the Chinese are loan sharking and charging us more interest…
The main problem is the academic practice that allows this type of thing to occur… which is the platonism/liberal Art methodology… it’s no bueno..,
We had the GFC over that period, so that was also a factor. Foreclosures. Home prices plunged due to mass liquidation.
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