Why did the government lower the mortgage rates?
A. To push up the price of treasury notes.
B. To boost consumer spending.
C. To take money from the stock market and put it in the real estate market.
D. To lower inflation.
E. To allow more people to own their own home.
The author state the government lowered mortgage rates in order to fight a potential for recession. Thus the Fed took this action in order to boost the economy by enabling people to take the equity out of their homes and buy goods and services.