Why would I want to sell my homes and “fire” borrowed money from Fannie that I currently “employ” to work generating income for me, when I wouldn’t be able to “rehire” borrowed from Fannie (or any other source) to “work” in a 10% CD?
You’re not thinking like the average homeowner, who thinks in terms of resale value, not rental income. Values are dictated by the market. Most people don’t buy with cash, and won’t qualify at a higher rate at current price levels.
Whether rates will rise is a different question, but there’s certainly a lot of political pressure against further QE at this point, and things like 3% down are also being brought into question. Yay GOP!
