Mortgage rates have jumped higher over the past year, but they still sit at historical lows. However, that may not be the case for much longer.
Politicians on Capitol Hill, both Republicans and Democrats, are discussing a bill that would reduce the government's participation in the housing market. While many agree this would be wonderful news for the U.S. taxpayer, it may not be so for American homebuyers. The government's deep involvement leads to lower interest rates for potential borrowers, and rates could jump higher with less government support.
In this segment from The Motley Fool's financials-focused show Where the Money Is, Fool banking analysts Matt Koppenheffer and David Hanson turn once again to the Twittersphere, this time to discuss why mortgage rates may soon skyrocket. They look at a tweet from @NickTimiraos, and discuss just how big of an impact on mortgage rates the overhaul of Fannie Mae (NASDAQOTCBB:FNMA) and Freddie Mac (NASDAQOTCBB:FMCC) could have.
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David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.