As real estate markets improve the federal government wants to balance the scales so that the real estate market doesn’t spin out of control again. The complaint we hear most often about this increasing of the mortgage interest rate is that it is indiscriminate.
When the federal government is in control of something they tend to see it nationally and real estate is not national. Real estate is local. When a state has an unemployment rate twice as high as another and a real estate market that has yet to see any signs of improvement it doesn’t make sense to have an increase in interest rates.
Yet this is exactly what we have going on today. The complaints we hear are exclusively from the states that have not seen an upswing in the market.
To increase the mortgage interest rate in areas that have been depressed for a number of years already does not seem to be the recipe for a successful recovery. But this is what the federal government is doing because they are after all the federal government. The answer for many people has been to give up but that is not always the best answer. Many people have given up just as salvation was on the horizon.
Each person, each family, each community is different. That is both the problem and the solution. We the people affected have to make those decisions that affect us. We cannot expect the federal government to think locally, it is not in their DNA. They are determined to keep the market from exploding and they are not able to see into your community, your family and they cannot hear your complaints because there is no Homeowners Union. There is only a mixed chorus of millions of worried Americans that complain blindly and anonymously online because we feel that we are the only ones affected and that somehow this situation is our own doing and that we should be ashamed.
The truth is that we are not alone. We are not an isolated case of financial mismanagement. We have been hit by a wave of misfortune that is overwhelming and humbling, confusing and convoluted. We have to remember two things.