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    The Federal Reserve and Department of Treasury influence national fiscal policies that impact the housing market. The Federal Reserve determines interest rates, which directly affect demand for housing and home prices. Lower rates mean more money in the economy and economy and lower mortgage rates, increasing housing demand. Higher rates have the opposite effect. In 2009, the Department of Treasury introduced the Home Affordable Refinance Program to help homeowners with good payment history refinance into more stable, lower rate loans. National interest rates are also very important, as higher rates mean higher home prices but reduce accessibility, while lower rates have the opposite effects.

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    The Federal Reserve and Department of Treasury influence national fiscal policies that impact the housing market. The Federal Reserve determines interest rates, which directly affect demand for housing and home prices. Lower rates mean more money in the economy and economy and lower mortgage rates, increasing housing demand. Higher rates have the opposite effect. In 2009, the Department of Treasury introduced the Home Affordable Refinance Program to help homeowners with good payment history refinance into more stable, lower rate loans. National interest rates are also very important, as higher rates mean higher home prices but reduce accessibility, while lower rates have the opposite effects.

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    Late Economics

    Uploaded by

    Paco Acts
    The Federal Reserve and Department of Treasury influence national fiscal policies that impact the housing market. The Federal Reserve determines interest rates, which directly affect demand for housing and home prices. Lower rates mean more money in the economy and economy and lower mortgage rates, increasing housing demand. Higher rates have the opposite effect. In 2009, the Department of Treasury introduced the Home Affordable Refinance Program to help homeowners with good payment history refinance into more stable, lower rate loans. National interest rates are also very important, as higher rates mean higher home prices but reduce accessibility, while lower rates have the opposite effects.

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    The government bodies that influence the national fiscal polices that potentially affect the housing market

    are the Federal Reserve.   This body decides the rise and fall of interest rates.   For example, if the rate
    decreases, more money is introduced into the economy.   This will trigger the interest rates to decrease
    and therefore increase the demand for the housing market and then solidifies the prices of homes.   Also,
    if the rate increases, less money goes into the economy and interest rates will increase and the demand for
    houses will fall.   Another government body that will influence the national fiscals policies is The
    Department of Treasury.   In 2009, the Department of Treasury introduced The Home Affordable
    Refinance program was available to homeowners who have a solid payment history on an existing
    mortgage owned by Fannie Mae or Freddie Mac.   These home owners were able to refinance their loan
    and take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a
    more stable mortgage, such as a 30-year fixed rate loan.

    There are many national fiscal policies that can affect the mortgage rates, housing starts, and housing
    prices. The lending rate seems to be the most important issue. This establishes if lenders can borrow
    money from the Federal Reserve to put money into mortgages and housing starts.   The higher the interest
    rates go, the higher the prices of the houses are.   If the interest rates are too high, many people will be
    able to make use of banks and the price of homes will begin to fall.

    My recommendations as to the risks and the benefits of purchasing a home based on these considerations
    are for all first time buyers to consider purchasing a home using the American Recovery and
    Reinvestment Act.   This is the act that Congress put in place to give these first time home buyersa tax
    credit of up to $8,000.   This has been extended until June 2010 (Politics: Economics, 2010)

    A New house risk and benefits. (2010, February 28). Retrieved August 13, 2010, from
    http://www.cyberessays.com/Term-Paper-on-A-New-House-Risk-And-Benefits/2516

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