So if interest rates rise, but lending standards are relaxed in the future (again), what will the net effect be?
I suspect fiscally prudent people will probably opt out of buying inflated home prices. But fiscally prudent people probably don’t make up most of america….
Maybe this time it will be different. (This time I have homes to sell…)
Dear Fed Gods,
Please relax lending standards again so folks can bid up 1/1’s in MM up to $300k again… Meanwhile, I’ll patiently wait to see if that ever happens, while my tenants pays for the mortgages and leaves a little left over in the process.
