A Commentary On “Sellers Brace for New Mortgage Caps”
Doesn’t go far enough. Fannie and Freddie should have been disbanded years ago (better yet, never created). I confess I feel no sorrow for the man who might not be able to get his $600,000-plus loan because the cap might be put on the size of his mortgage. How about buying something a little cheaper? If this guy has 3.5% down payment on $662,000, why not buy something of that value for CASH and have no mortgage? Might have to live with two bathrooms instead of four? So sad. Housing went into an unconscionable bubble because of govt regulation like the Community Reinvestment Act of 1977 as amended. Yes, the ridiculous prices of 2007 might stabilize in 10 years at a rate more consistent with the year 1998 or 2000, but pushing prices higher (as real estate estate people seem to want to do) doesn’t help anybody. Creating jobs for construction workers when there’s no market for new houses is stupid and ultimately drives the prices down everywhere. Let’s get real with real estate pricing. When we’re going down like an elevator, we have to face it and wait until the elevator goes all the way down before things can get better. The market has to be cleared of bad loans and getting Fannie and Freddie entirely out of the market would be a big help, though painful.