Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.
I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.
sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.
