The freeze could be largely symbolic and political.
Too much downward real and psychological pressure may be
in effect to bring this aircraft out of a nose dive.
Its a measured act of desperation. If the govt wasn’t frightened, the plan wouldn’t have been floated. Its presence merely confirms what we’ve been batting around here for years, loose and deceptive lending by the banks, and reckless spending by home buyers have aligned and the result is dire.
Look at Rich’s report on the September Case-Shiller numbers. Those look bad. Look at the slope of the three tiers. None of those look good. And, they only show activity thru September. Any bets on Oct, Nov, Dec, or in 2008?
We went looking at homes to keep our feelers out last weekend. A seller in CV had listed a home for ~$835K. The down-the-street neighbors who waited for us outside and who also viewed the home, stopped us and said they are selling the same model of home for more like $730K (or lower w/o agents ~$700K?) On the same street, similar model home prices vary by $100K OR MORE!
The mortgage freeze isn’t going to have any significant affect on this market, IMHO. It will continue spiral down.
