…Well, considering that the Fed owns Fannie and Freddie, for practical considerations AIG, and just about every bad mortgage that there will be, what do you think will happen? You think the Fed is going to led home prices crater overnight? You think the Fed isn’t going to step in again and again?What started out to be a slow decline appears now to going to be even slower and slower and slower.
I wouldn’t be surprised if they start making these ridiculous low payment plans to keep people in homes longer to prolong the foreclosure issue (rather than one big bang, it’s a slow and now slower decline). I wonder what rates are going to look like soon. I have a feeling they are still going to stay low at least in the short term.
Personal reason, this is precisely why I don’t dick around considering my primary home being an investment. I’m not smart enough to time the markets and figure out when when the Fed is going to stop pissing into the wind. Inflation is eating “safe” savings, and we’re finding out things really aren’t that “safe”. And now fed keeps intervening in the housing/financial markets, who knows when we’ll see that additional 40% decline that some have claimed is yet to start.
NOTE: Selfishly, I hope I can refinance into a 2% 30 year fixed loan soon. Or maybe soon, it will be a -1% 30 year fixed loan, in which the Fed rebates me back to buy a home with a mortgage. Yeah, that would do it for me. 🙂
But more alarming (echoing Running Bear), I weep for our children who are going to be on the hook for this. I hope before than it either miraculously gets fixed OR my child decides to live in a better environment somewhere else.
