All Finance Advice

The banking system in the USA is in crisis. The Federal Government keeps pumping in money to hold interest rates down, yet mortgage interest rate predictions are still through the roof - what’s the story? And what will it mean for the average American?

If house values plummet, as they have in some parts of the US, then the default risk for the banks suddenly increases, which means that they will be wanting to charge higher mortgage interest rates; predictions will take this upward pressure into account.