But how large is the group willing to make 30 year fixed mortgages?

Reader comment on: Barney Frank on Housing

Submitted by Lyle (United States), Sep 4, 2014 17:31

I know I would never be foolish enough to make a 30 year fixed mortgage as an investor. The real question becomes are there enough investors to maintain the 30 year fixed market when you throw the much larger group of conforming mortgages into the pot. Of course I think a 10/30 adjustable rate mortgage makes sense, i.e. adjust once every 10 years. Since the average mortgage lasts only 7 years this would become a non issue for most. But the interest rate adjustment would mean that one would not be trapped for 30 years with a low return on investment.

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