[Alberta's Child]

The Fed does have some measure of control over interest rates, but not when it comes to mortgages. Mortgage interest rates are typically tied to the yield on 10-year Treasury notes, which is a function of the supply and demand of U.S. government debt. Mortgage interest rates have been at or near historical lows in recent years because rates on government bonds have been so low.

The rates on government bonds ARE set by "the market."

[ari-freedom]

who controls the supply of us govt debt? the govt. Therefore the rate can not be set by the market even if the demand is.

Inflate the currency and the money is ‘easy.’ This is what happened this decade; people took advantage of the easy money, took risks in real estate they would otherwise not have made if the money was sound and got screwed in the end.