Our real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.
I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
