How 30-Year Mortgages Saved the Housing Market
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May 2 (Bloomberg) -- In most of the world, homeownershipisn’t seen as a natural step in the progress toward responsibleadulthood. Outside the U.S., mortgages are for small amounts,for shorter times, and have adjustable interest rates. Thepopular U.S. 30-year mortgage with a fixed rate, which makespossible low monthly payments and a more certain future, is anoddity.
How did Americans develop such a peculiar financialpractice? The New Deal.