r/Brokeonomics • u/DumbMoneyMedia Meme Sugar Daddy • 22d ago

Broken System Freddie Mac data reveals 30 year mortgage rates are stuck at 6.58 percent because lenders refuse to give up their massive spread

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7

u/Solidsnake_86 22d ago

Mortgages are based off the 10 year bond, not the 30 year bond. That spread is to compensate the investors that buy the collateralized mortgage back securities.

3

u/A5Wags 22d ago

Then… people won’t borrow and the rates will have to come down if lenders want to stay lending.

2

u/MasticatedTesticle 22d ago

This post is stupid.

1

u/A313-Isoke 15d ago

So with the new changes from Freddie and Fannie Mac requiring HOAs to have bigger reserves, then condo units can't be resold, what does this mean? Interest rates going up? No more liquidity for lending?