Republicans Want Millions of New Homebuyers to Lose Money on Their Homes

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That is the logical implication of their plan to push mortgage interest rates down to 4.0 percent to boost home prices.If extraordinarily low interest rates can boost house prices then the implication would be that house prices will plunge again in 2-3 years if the economy gets back on its feet and interest rates return to more normal levels. It would be helpful if the reporters would seek out an analyst who understands housing markets in discussing such policies.

--Dean Baker

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