I think this is an incredible loan. I wouldn’t mind taking advantage of such an ill conceived program designed to get unqualified people into the peak of the mania.
Why overpay now to do it?
It will be a double bonus later on to buy a house at a reasonable price plus get better than market financing. No one should feel pressured to buy immediately due to any such program. Price matters more than financing terms or monthly payment.
Anyone really think these programs are going anywhere soon? My guess is more government intervention and not less as this plays out.
It doesn’t seem likely wages will dramatically inflate to stabilize prices. Isn’t it normal for wage inflation to lag real inflation? The claim that a 4% wage increase is outpacing inflation would be hotly contested by many.
My personal real estate bet is I can pick a more reasonable entry point into the market before wages show any substantial increase.
Don’t forget about financing in the face of obvious inflation. Even if incomes rise somewhat, financing is only likely to get more difficult. The net result will still be declining property values. I don’t see how devaluation of the dollar even matters. It is basic supply and demand.
Wage inflation is swimming upstream against both the financing and distressed inventory trends.
