I was making more of a comment on the fact that many homes were purchased by people with no money down. As the no-money-down loans decrease, the middle tier buyer can’t sell his house, since the $600K buyer was going on 0% down, so the guy can’t move up to the $1 mil + house.
OK, I’m with you now. 🙂
I wonder how and when the no-money-down loans will decrease or go away. Perhaps you’ll still be able to get that piggy-back HELOC for the 20%, just at some insane interest rate… i.e. the insurance premium of possible loss is built into the rate, in the same way as intended with sub-prime interest rates.
