Should the US government issue mortgages itself? Essay

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Should the US Government Issue Mortgage Itself?
For the vast majority of Americans, it is impossible to buy a home without a mortgage. Getting hundreds of thousands of dollars to build a great home is a privilege reserved for a few individuals. Fortunately, hundreds of lenders can offer a wide range of mortgage loans to make dreams of having homes real for many. The US government has, in recent years, issued clear paths for companies to issue mortgage loans to citizens. The result of such pathways is an increase in the number of borrowers who would not be able to pay the mortgage loans. The Government should not issue the mortgage itself since the ripple effect of the intervention would be worth more than the intended benefit.
When the Government digs deeper into mortgage schemes, their interests will be lower than the available rates provided in the market. The house price inflations, which have led to a shortage of supply in housing within the country, have moved real estate and property ownership out of reach by many individuals. This is a good sign of a working mortgage policy. If the Government provides lower interest mortgage loans to its citizens, then there will be more loan defaulters in the country. There is a high probability that banks and other lending institutions have previously rejected potential government mortgage borrowers (Adelino, Manuel, Antoinette, & Felipe, Pg. 1636). The Government, therefore, should not issue mortgage itself since it will reduce interest rates to make homeownership accessible to many citizens. The move means the Government would be helping many individuals own what they cannot afford. High defaulter rates led to the National Mortgage Crisis in the country in 1930, an effect of government involvement in the mortgage market.
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