A New House - Risks and Benefits

A New House - Risks and Benefits

Which government bodies influence national fiscal policies that potentially affect the housing market?

This is a few of the government bodies influence, Justice Department, President, Housing and Urban Development, Congress.

What are some national fiscal policies that can affect mortgage rates, housing starts, and housing prices? Be sure to provide specific examples.

Fiscal policies that can be affected can be by the Federal Reserve (FMOC) - The Federal Reserve's Monitoring Committee. An open market purchase of bond increase the money supply and a market sale of bond decrease the money supply. They decides on the decrease or increase in all the interest rates. It will also affect the housing prices, and mortgages rates. Now if these rates would go down most of the time there will be more money that will go into the system. This will cause all the rates to drop, and it may increase the demand on the house and it may turn the price on the house. This Vice-versa in case of rise in interest rates. Now if the interest rates drop, the cash will be reduced in the system and cause the interest rates to rise and make the finance costlier, and it will affect the market.

What is your recommendation as to the risks and benefits of purchasing a home based on these considerations?

This is what I may recommendation everything in this life in time everyone takes a risk here and there. Sometimes thins may fall, and you may make the wrong decision. I think if you confident (with the economy now the way it is) with your employer, by your finances in very good shape by you purchase a house I personally think it will benefit you. The interest rates are low in some times, when your property value is cut down you will get more for your money. It's is a buyer market not a seller's market.