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But since lender participation is voluntary, they have the option of rejecting these loans — and they often do, mortgage brokers say.
As the companies' cost of borrowing rises, so do mortgage rates for homeowners, putting more pressure on the troubled housing market.
When they do, mortgage rates and the dollar will come way down, and the conditions for a recovery led by housing and exports will be in place.
As long-term Treasury yields tick up, so do mortgage rates, which fell after the Federal Reserve slashed its key short-term interest rate to nearly zero.
For a start, bonds can operate as a kind of negative-feedback system; when yields rise, so do mortgage rates (particularly in America, where loan rates are linked to bond yields).
Interest rates already rest profoundly low in their 60-year history as do mortgage rates.
Similar(52)
Homes cost more, and so do mortgages.
There are banks that will do mortgages for their best customers and the government is getting involved in other customers.
Lenders, though, have avoided such schemes and haven't done mortgage modifications on any meaningful scale.
Nobody who's doing mortgage research — we have lots of them here — disagrees with that.
(Only recently, when the Treasury announced it was halting its auctions, did mortgage bond prices start to stabilize).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com