I dont know about the whole renter=owner thing, atleast in theory you are building equity when paying a morgage, you never will as a renter. It is kinda like paying the max deductions on your paychecks (as most americans do) and then getting a rebate at the end of the year. The Gov. is just giving you your own money, making it a form of inforced savings. If you own your home you pay more than rent (normally) but you get that money back in equity at the end of the loan. Plus you can paint and decorate as you wish. YAH!
My real problem with all this is that inflation is already well outa the comfort zone, so the Fed should be raising rates as it was at the beginning of last year. Problem is the economy cant survive raising rates, so we are going in the opposite direction. Housing is cured, its ill’s not spreading to the greater economy. Resets are not bad, as many have noted prime +2% = ~6%. Not bad. People stop defaulting and all is well.
Problem is that then the fed has to do something about inflation eventually. So rates go back up. Suddenly we are right back where we were as people cant afford the increases in their morgages as we fight inflation. Sure, people make more, but inflation is a bitch and is eating any of those increases in wages. People make more now than they did in 2004, but it isnt helping much is it? Outsourcing and increased competion keep a lid on wages, meaning that people are actually getting behind and savings are not what they once were. We become addicted to low rates and tolerant of increased inflation. This cycle holds for a few years, and eventually breaks as it always does. Instead of suffering our pain over 2007-2010 and getting on with our lives, we suffer the same pain, just spread out over 2007-2017 and over the entire population, renters and owners alike. To those born before 1977 (ie 30+) they already have alot of skin in the game and this is preferable. To the younger generations, with little to loose, this sucks.
Or maybe Housing is saved as thousands of Pigg’s and their 500000/yr salaries with 849 credit rush the multigenerational oppertunity of low interest rates and decreasing housing prices becoming landlords. Retiring on fat rents coming in from houses that need no repair, no upkeep, and are rented 365.26 days a year with 5-10% rent increases every year.
