“…but there will be an active and vibrant secondary market for loans…likely even those of the Jumbo or subprime variety at appropriate risk-reward valuations.
I assume by “appropriate risk-reward valuations” you are talking about higher interest rates for borrowers of said secondary market loans. Would you please explain how the higher payment that comes with those higher interest rates won’t bring the cost of the property down to compensate? I’m having trouble following your logic.
