[quote=spdrun]bearishgurl — Because many buyers wouldn’t be able to afford the payments at 7-8%. They can make the 7% loans, but the principal amount will be lower.

Better to keep the loan on their books, paying something, than have to resort to the bureaucracy of a short sale or foreclosure.[/quote]

So we are on average going to be making the same (pay) amount 10-15 years. good lord people there will be wage inflation.