Strong competition among home loan providers -- which has meant lower home loan rates than might otherwise be the case -- has certainly done little to discourage households in this regard. In some cases, interest rates for fixed-rate home loans appear to have been priced below the all-up cost of lending, as lenders have competed for market share.
I assure you that the Federal Reserve will continue to use these tools, as well as to examine various other authorities, to respond in a deliberative and balanced manner that is in the interests of markets, financial institutions, and consumers. 6  BIS Review 115/2007