Tag: the crowding out effect and mortgage rates
How Government Borrowing Can Influence Mortgage Rates
If you are a reader of this blog’s ‘rate update‘ posts then you may be wondering why attention is paid to the US Treasury and their biweekly auctions. The reason has to do with an economic principle called the “crowding out effect“.
According to Wikipedia ‘crowding out’ is “any reduction in private consumption or investment that [...]
Posted: February 3rd, 2010 under Economics & Interest Rates.
Tags: how US deficits impacts mortgage rates, the crowding out effect and mortgage rates, US deficit spending and mortgage rates, US deficits and mortgage rates
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