does anybody remember the late 70’s - early 80’s when the prime rate got up to 23.5%, VA Loans were available at 16.5% & conventional mortgage loans were not available at any rate?
the housing market was DEAD
then somebody came up with the idea of municipal bond financing to secure single family mortgage loans.
the first round of state or county issued mortgages came to market around 8.00%!! subsequent issues came to market with mortgage note rates around 10%. still a bargain to the 16.5% VA loan rate with an after tax yield that compared favorably to the 14.5% CD rates from local banks & S&L’s
the municipal bond backing the mortgage loans offered investors tax free income on the bonds.
these municipal bond mortgage loans dropped loan rates & monthly payments became affordable again
this financing tool did CPR on the home building industry & offered an affordable entry point to the American dream of home ownership.
I’m surprised someone like howard lutnick or scott bessent, both having investment banking careers, haven’t dusted off this old mortgage concept & stuck it under trump’s nose??
I remember the insane interest rates, but not what was done to lower them.
I remember those day because I bought my first home, a small 2 bedroom condo, at a 13.25% rate in 1984. 2 or 3 years later, I refinanced at 9.25, with a shorter term and lower payment. A lot of it was due to Reaganomics and getting the fed to start cutting rates. They had jacked them up to control runaway inflation due to Carter’s standard democRAT spending spree, but that just about killed the housing market. As it was, I had less than 20% down and thus had to get mortgage insurance on the first loan. I saved up and had over 20% equity on the refinance, so no more mortgage insurance.
oops
just one more thing that made the state/county mortgage bond financing attractive to investors was tha jimmah had the top federal marginal tax rate at that time was 70%
oh well trump, lutnick & bessent are a lot smarter than me
funny? politically incorrect video of somallys - 13 min
Comedians EXPOSE Somali Day Care Fraud
https://www.youtube.com/watch?v=-l5cgIYu7OQ
:: local banks & S&L’s ::
Sniff.
There’s a whiff of the mouldering John McNoName in there.
I remember
Certs of Deposit were a good investment, indeed.
I profited nicely
does anybody remember the late 70’s - early 80’s when the prime rate got up to 23.5%
***************************************
Yup, I do! I had just graduated from college, got a job, and needed to buy a car... I looked into used vehicles but found out that for a new car, the interest rates were a lot lower! Not what I wanted by any means but what I could afford: a 2-door, Ford Escort hatchback with no AC, no radio, and roll-down windows. That car stayed with me through my first few years of teaching, getting married, moving to Miami where our first child was born, and then back to Virginia where our second child was born. We ended up selling it to a high school kid when we could finally afford a bigger, new-to-us station wagon.
Looks like you called it!
Biden ignored the Housing Market, and instead was immersed with High Crime, Open Borders, runaway INFLATION, the Afghanistan Disaster, and a Military that he left in Chaos and Confusion. Everything was broken, but I, as President of the United States, have already fixed it! Now, I am giving special attention to the Housing Market. Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the “experts,” it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH. Because of this, I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed. We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!
https://truthsocial.com/@realDonaldTrump/115861588073149023
I’m surprised someone like howard lutnick or scott bessent, both having investment banking careers, haven’t dusted off this old mortgage concept & stuck it under trump’s nose??
~~~~~~~~~~~
Trump says he’s instructing his ‘Representatives’ to buy $200 billion in mortgage bonds, claiming it will lower rates
https://www.cnbc.com/2026/01/08/trump-mortgage-bonds-rates-fannie-freddie.html
(TRUMP WAS LISTENING TO YOU!)