06 December 2008
I Think that Someone is Stuck in a Do Loop
Because it looks like Treasury's latest plan is to lower mortgage rates to 4.5% for new home buyers, to stop the slide in home prices.
First, you can't re-inflate the bubble...The speculative frenzy that was at its core is over.
Second, why would someone buy a house at 4.5%, when whoever you sell the house to 20 or 30 years later would buy at a more normal rate, driving the price down.
Basically, it's an attempt to get people to knowingly buy overpriced homes.
Does it come with a kick me sign for buyers to wear on their back?
First, you can't re-inflate the bubble...The speculative frenzy that was at its core is over.
Second, why would someone buy a house at 4.5%, when whoever you sell the house to 20 or 30 years later would buy at a more normal rate, driving the price down.
Basically, it's an attempt to get people to knowingly buy overpriced homes.
Does it come with a kick me sign for buyers to wear on their back?
Labels:
Bureaucracy
,
Finance
,
Stupid
0 comments :
Post a Comment