Mortgages Under 5%

CNN reports that one good result of this financial crisis is gradually lower mortgage interest rates for new home buyers. It would seem that the system is slowly normalizing as the recent rapid rise of the housing market had over-inflated prices. In economics, this normalization is met at an equilibrium point where the rates would be at a place where consumers and suppliers are in agreement. The markets are rarely at this point as everyone cannot be in agreement all the time. The equilibrium point is a good point to measure how off base the market is. The full CNN article can be read here.