No. of Recommendations: 5
WHO is going to write a 30-year fixed rate mortgage if you expect the Fed to be 50 trillion in debt by 2030 the latest, and for interest rates to be higher?
Anyone will write a conforming 30-year mortgage. Because they write it, they take their fees, and then they almost immediately sell the mortgage to a quasi-government (or government) agency (Fannie, Freddie, Ginnie)that hold most of those 30-year mortgages. They, in turn, securitize them and distribute them on the mortgage backed securities markets. Then a bank services that mortgage, and takes an additional fee for doing so.
So, the fixed 30 year will remain available, but the rates may be higher depending on the appetite in those markets. Of course, when fixed rate mortgages have higher rates, more people opt to try adjustable rate ones.
