...A lot of the blame lies with the Fed for keeping rates low for too long, but mostly with lenders for irresponsible and risky lending practices. The lenders are getting their comeuppance now. Do we really have to beat down people who just needed a home too? - Rhadamanthus | Date: 6/27/2008 10:12:15 PM | Number: 80

The housing mess is NOT the FAULT of the Federal Reserve System for keeping rates low. Low rates are good for home buyers as well as home sellers. Low rates are also a strong stimulus for long-term business capital investment and the later increases in worker productivity that results from that business investment. Many who posted on this board strongly advocated the position that floating and variable mortgage financing rates are and were the way to go rather than the much safer, for the home owner, a 10-year, 15-year, or 30-year fixed rate mortgage.

I have always advocated for fixed rate mortgage financing: Interest rates go lower, refinance at the new lower rate. Interest rate go higher, the mortgage debtor does not care - the rate is Fixed.

Kahuna,CFA