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Case Study example - Mortgage Market in the United States
Pages 8 (2008 words)
The mortgage market in the United States is on a downward slide. This depends on which side the statement is addressed. On the side of the mortgagor (borrower), the decrease in the mortgage interest rates is a welcome and economically good situation. However, this is not a good predicament to be in if the person affected is on the side of the lender (mortgagee)…
Extract of sample
However, the low interest rates offered by mortgage lenders as well as the requirement to service the mortgage debts of the home owners in relation to their higher take home pay will not bring back the sad economic scenario in the 1990s era. Also the high value attached to the homes has triggered the money lenders to enter into the home mortgage and the chattel mortgage economic market. Currently, the fixed costs that goes with maintaining a home is no longer as expensive as the mortgage homes of the early part of the 1990s(2003;p.5).
Despite the unfortunate beginnings in the latter part of 2002 and until 2003, many people contributed to the economy by continuing their spending spree at moderate speed. This was one of the major factors that prevented the increase in severity of the economic downturn. Thus, government monetary policy theory states that the state must intervene in order to create a competitive economic environment (Roberts,2000;pp 77). ...
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