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   The idea that you can borrow money to buy a home at the same rate in the U.S. Housing Market is simply stupidity.

   Some housing markets need better rates to stimulate borrowing than others.

   FHA sets limits on loan amounts based on where the home is. Why not tie interest rates the same way with low rates in challenged areas and higher rates in non challenged areas. Oil Companies understand this as you see it in costs per gallon different throughout the country. Base rates "The cost of money" by state, country and city where stimulous is needed and where it is not.

Consider the unemployment, the growth rate and population declines of states, countries and cities. Then set rates based on the needs to grow those economies. This factor alone may become a equalizer to the cost of money against the market the consumer finds himself in.  Having low rates in markets that don't need them is like adding fuel to the fire, which only over stimulates the haves and hurts, the have nots.

The one rate fits all method doesn't work and it's bad economics and frankly dumb.

Jeff Hedberg