This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.
