Prices will be pushed down, and first-time buyers will be squeezed out (at least till the return of high-LTV private-jumbo and second mortgages, which may be never).
* if you’re sitting on a six-figure down payment, it’s best to wait till next summer or fall. Prices need to come in equilibrium with new lending conditions.
* if you have high income but not much savings, you have to buy NOW, it may be your last chance to buy in Encinitas or 4S Ranch, at any price.
