” Anyone buying right now thinking this is the bottom, or that you are getting a great deal, more power to you. ”

I totally agree with hipmatt. What will happen to Temecula when gas is $4 to $5 per gallon?

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bsrsharma, yes that loan is a good loan. But it goes without saying that any subsidized loan is better than market rate loans. Basing a purchase decision on financing is stupid in my view considering that prices will drop. Better to buy low and pay a high interest rate at the time, then refi when rates drop. (My conventional loan is 5% so I have no incentive to pay it off since I make more money in a CD)

BTW, I agree with you on inflation in 30 years. But better to focus on NPV when making a purchasing decision.