Mortgage Loans for the Non-Wealthy

If people are not extremely wealthy, they usually need to rely on mortgage loans to buy a house. If the cost of these loans is high, their ability and willingness to pay a higher price for a house will disappear. Therefore, the interest rates at the margin (the additional or incremental interest rates) play a crucial role in determining housing prices.

Watch more of this short video from Looming Credit Collapse To Tank Stocks AND Bonds? | Alasdair McLeod.

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