There are a lot of things that can happen. The average Joe thinks on the level of rates and points. The mechanics of mortgage backed securities occurs on the secondary market. If the government steps in and guarantees the loans they become more valuable to institutional purchasers. This provides lenders with better margins wherby they can reduce rates and remain profitable.
I hate to tell people to throw good money after bad money but there could be help around the corner. The bottom line is that you ahve to live somewhere for the time being and you still have a few years before the rates reset.
Besides that the winter is a bad time to be a seller and typically a good time to be a buyer. Those who have cash are really looking to low ball at this point. I would want to wait this out until some the the legislative dust settles.
There were a lot of people who bought at the high point in a lot of real estate cycles and those who were able to hold on did OK over THE LONG HAUL.
Besides that, you suggested that you liked your place in all of your posts. My thing to you is what are the job prospects? Any chance your income could rise by 10 or 20% over the next 1 to 5 years and if it’s not is there anything you could be doing to get it going in that direction.
