It depends. While mortgages lock in a monthly payment you must first save up a down payment. The same cash flow directed into the stock market would also build "equity." If one does not move within seven years buying housing is better.
Not sure if that is true with current rates - and also is due to government policy propping up cheap money to homebuyers.
As I've said, no bank in their right mind would give out the mortgages they are right now if they didn't know they could turn around and sell it straight to Fannie & Freddie
Indeed. Without Fannie Mae and Freddie Mac (government sponsored enterprises) there would not be a 30 year mortgage. Mortgages would probably adjust the rate every five years.
