Why would this put a floor under housing? The only way that would happen is if the real problem was that good credit risks couldnt get loans. This isnt the problem. Good credit risks, people with jobs, and real DP’s, and good credit histories, can get loans that historically speaking are retarded for the banks to be doing. But they are there, loaning away, at 4.5% again.
Or I guess if the banks didnt learn their lesson and started lending to all warm bodies regardless then housing will have a floor put under it. But we would be right back here again soon enough, and then people would get linched.
No, this is all about stopping the overcorrection from trend. We will revert to normal relationships compared to incomes.
All the other stuff is BS from/for the guys who bought Congress calling in their chips.
