I read additionally that:
* they are not reducing interest rates further below their current levels (although no mention of raising them anytime soon)
* they are going to use "other tools" to stimulate the economy (QE?)
* they are not reducing interest rates further below their current levels (although no mention of raising them anytime soon)
* they are going to use "other tools" to stimulate the economy (QE?)
We could see a huge run up of property values as people shift to taking advantage of real estate leverage and tax advantages coupled with literally free money.
What you may be referring to are the parameters of a "conforming" home mortgage loan.
https://en.wikipedia.org/wiki/Conforming_loan
Conforming loans are subsidized by the US federal government because the US federal government buys them and so funding for them is basically limitless.
Mortgage rates for conforming loans are a few points higher than fed rate. That’s cause the government owns the actual loan.