The housing boom is still active - mostly because interest rates are so low. Low interest rates are helping lots of Americans buy homes. Many people are wary that when The Federal Reserve System kept interest rates low in 2008, it lead to a financial collapse. KTRH Money Man Pat Shinn says one reason this is different is that the loans are much harder to qualify for, so the chance of default is lower. And The Fed is buying mortgages using funds kept in banks' reserves. "They [The Fed] have been a huge buyer of mortgages. They are NOT doing it by printing money - they are doing by borrowing money." Shinn says even though rates have gone up with the news of a Covid-19 vaccine... he says if you can qualify for a refinance - it's a great deal!
Shinn says American homeowners' housing debt has reached nearly 10 trillion dollars. The country is seeing record-breaking low rates. Shinn says applying for a loan or refinancing will be tougher than it was before, but worth it.