Rental Property Investor · Wilmington NC · Member since 2020 · 20 posts · 3 votes
Hey everyone,
First off, I hope everybody is safe and doing ok during this crazy time. I came across this very interesting and informative article that I wanted to share. I’ve had a lot of people asking me, and I’ve seen a lot of posts on different media platforms, wondering if mortgage rates are 0 or what it means that the feds cut the rate to 0 so I wanted to share!
The author is of course spot on correct in that article, but this part...
"The extent to which consumers and especially financial news media (who should REALLY know better by now) mistakenly believe the fallacy of the Fed dictating mortgage rates is truly unfortunate.
...is overlooking something big. He's completely overlooking how much news websites gets in ad revenue from internet mortgage lenders buying adspace when the article is about "omg fed dropping rates!" Traditional journalism is dying, they use little things like that (Every. Single. Time. the fed drops rates) and other gimmicks to stay afloat. Whenever an article is about to pop about rates going lower, there's a bidding war for the adspace right next to that article.... the more sensational the last article about the subject was, the more the next article gets bid up. Hype sells, baby!
No one here thought journalism in 2020 had anything to do with helping maintain an informed public, did they? :P No, not any more anyways, it's just a marketing platform now.