Soaring Mortgage Rates Are Going To Make It Far More Difficult To Buy Or Sell A House

Michael Snyder

Did you actually think that mortgage rates were going to stay at all-time lows forever?  Federal Reserve Chairman Ben Bernanke was able to grossly distort the market for a while by buying up massive amounts of government bonds and mortgage-backed securities, but there was no way in the world that the market was going to stay that distorted forever.  It simply does not make sense to give American families 30-year mortgages at a fixed interest rate of less than four percent when the real rate of inflation is somewhere around eight to ten percent and the mortgage delinquency rate in the United States is 9.72 percent.

If we actually did have "free markets" and they were behaving rationally, mortgage rates would be far, far higher.  Well, now that the Fed has indicated that they are going to be starting to "taper" QE at some point, bond yields have skyrocketed and this is rapidly pushing up mortgage rates. According to Freddie Mac, we just witnessed the largest weekly increase in mortgage rates in 26 years.  Sadly, this is only just the beginning.  Unless the Federal Reserve intervenes, mortgage rates are going to continue to try to revert to normal.

The Fed Now Owns Your Foreclosed Property Under QE3 Purchase of Toxic Assets

Susanne Posel, Contributor

On ABC’s “This Week”, George Will, columnist for the propaganda news outlet Washington Post, spoke out against Ben Bernanke, Chairman of the Federal Reserve and his decision to instill QE3 which is essentially, “the government printing money.” Will pointed out that this latest move is covert “trickle-down economics” where citizens are forced to invest in equities in order to continue to prop up the economy to perpetuate the false sense of reality the American public lives under.

Last week, Bernanke announced that the Fed would purchase $40 billion per month in toxic assets called mortgage-backed securities. While this scheme will devastate the US dollar’s value by the very act of printing more money, there is a secret bailout of certain financial institutions occurring under the radar.

QE3 serves as a “regressive redistribution program” for the banksters who are enjoying a surge in their wealth under current economic conditions.

The Federal Housing Finance Administration (FHFA) recently announced that “strategic defaulters”, i.e. those homeowners who have abandoned their mortgage because they could not continue to make the monthly payments will be jailed for this “crime”.

In Prison for Taking a Liar Loan

Dees Illustration

Joe Nocera
New York Times

A few weeks ago, when the Justice Department decided not to prosecute Angelo Mozilo, the former chief executive of Countrywide, I wrote a column lamenting the fact that none of the big fish were likely to go to prison for their roles in the financial crisis.

Soon after that column ran, I received an e-mail from a man named Richard Engle, who informed me that I was wrong. There was, in fact, someone behind bars for what he’d supposedly done during the subprime bubble. It was his 48-year-old son, Charlie.

On Valentine’s Day, the elder Mr. Engle said, his son had entered a minimum-security prison in Beaver, W.Va., to begin serving a 21-month sentence for mortgage fraud. He then proceeded to tell me the tale of how federal agents nabbed his son — a tale he backed up with reams of documents and records that suggest, if nothing else, that when the federal government is truly motivated, there is no mountain it won’t move to prosecute someone it wants to nail. And it was definitely motivated to nail Charlie Engle.

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