renterclint, the state regulators are releasing their exotic lending guidelines on Nov 14. That will be the end of real estate as we know it, in my opinion.

After we remove stated income and qualifiying on teaser rates, will we have any buyers left? I think 1st time buyers cannot get into a house without these loans, and they will be completely shut out. Without the 1st time buyer, the entire chain breaks, and within 1-2 quarters, the move up market will come unglued as well. When will we see the big drop in sales resulting from these guidelines? If they take effect Nov 14, then offers made after Nov 14 are in trouble, and we will see the initial results in lower November sales. December sales will be the big test.