The era of cheap financing may be winding down

Who says money’s cheap? According to Bloomberg News, the era of record low interest rates, which help nudge the housing market towards recovery and record home-lending profits, could be coming to an end. Last week, Fannie Mae-guaranteed 3 percent securities, used by lenders to price new loans, fell to their lowest level since September 12, the day before the Federal Reserve announced that it would buy $40 billion of mortgage debt each month. [more]