Since we’re talking about student loan bubbles and auto sales declining today, I thought I’d bring up real estate. I see Fannie Mae is raising the allowable Debt to Income Ratio (DTI) from 45% to 50% next week. The National Association of Realtors thinks this is a great thing. Are they right?
They’re right, but for how long are they right?
Homes are not being built in sufficient volume.
They are right, its good for themselves and related businesses, for a short amount of time. After that, and for everyone else, no so much.
Half the families are having no children. (USA)
There is a secret program to bring in millions
and millions from Saudi Arabia. We are losing
population. The crowded cities are an illusion.
It’s right for some people, but not for the borrowers.
We are starting to see more bank owned and short sale properties pop up here in PA.
Sure, it’s great for NAR members, but as Koko said above: it sucks for borrowers. And let me guess, the loans will be ARMs? Perfect for lenders and real estate types. Hopeless romantics, here we go again.
Generally not, rates are still so low, the ARM is very unusual.
House building is booming in the valley surrounding Phoenix. House prices are going up pretty fast too. Gotta be the cheap money.
No but when has that ever stopped a bad idea from being implemented? It’s the ‘Murican way dont’cha know!
When do we hang the bankers?
And the Republican Franklin Raines is …
Want to shake things up? Make all current mortgages assumable for a $100 processing fee. Adds a whole new dimension to RE.
used to be that way–a lot less foreclosures–