2) Imagine if there was NO financing available for houses,, if people had to actually save money and pay cash,, obviously prices would be much lower than where they are
2a) Imagine if 50% down payment was required, houses would sell for more than #2 above
2b) Imagine if 20% down were required, with 80% financing.. you would have an orderly functioning market, with prices NEEDING to be affordable, and creating market prices higher than 2a.
2c) Allow 100% financing AND stated income loans and you create the biggest market bubble in the history of the world, which ultimately leads to the biggest economic meltdown in history.
People don’t care what they pay, they have nothing invested..
Manipulating the availability of financing manipulates the prices, directly AND indirectly.
Allowing non owner pricing allows more property to be sold which benefits the govt in many ways.
Having property be UNaffordable to many and keeping prices lower DOES NOT benefit the govt.
This is not conspiracy, this is FACT.
Think about which is better for the economy, thus better for the govt and what their goals, desires and motives are… It all makes total sense.
FHA is creating the new subprime market.. HLS[/quote]
Other than increased taxes, how does higher home price benifit the Government? Who said housing is affordable to almost anyone? Wasnt it like 5% of people could afford to buy a huse back in 05?
If prices were lower, people would have more money to spend on other things at the end of the month. If we really are a consumer based economy, should we be pushing people to buy consumables and not fixed assets?
