We have an election year, and the fact that nobody wants the economy to completely fail. I just can’t see the government letting this ship go over the cliff, at least without trying every possible last ditch effort to prevent it.
As much as many of us would like homes to be half priced over the next few years – the consequences of that could be drastic.
If they cut the rates again and allow some people to lock their rate for 7 years. That might stop a wave of foreclosures, and keep people in their homes paying their bills. Fewer banks go under, etc. Maybe prices won’t fall of the cliff, but dip a bit and then stay stagnant 10 years letting inflation ‘lower housing prices’.
A percentage of people who made stupid financial decisions aren’t punished, and get to free pass out of financial ruin. Nobody said life was fair – pretty sure that is rule #1 or 2 in the book of life as much as it may suck.
