[quote=sdrealtor]I beleive it has to have some impact just not the pizza party some of you are hoping for. Time and again I have seen the impacts of various changes being muted to a very high degree. Lower prices at some some price points? Sure. Much lower? Think again.[/quote]
I’d agree with this. I’ve posted before definitely it’s NOT going to help prices at all. I think everyone agrees on that point. I just don’t know how much it will affect prices in NCC but I do see some softening due to this. Just basic principles of economics.
It will be interesting to see how much it softens due to the change.
Everyone and their brother is trying to lobby against the reduction now. Even people that were formally pro-reduction have now changed their tune including Moody’s top economist. They know how fragile the market is now and are desperate to do anything that could help.
I just bought a house 2 months ago (I held out for many years) but I’m all for them lowering the ridiculously high limits that they kept raising for years.
Agree, I don’t think anyone is saying there wouldn’t be any softening of price, just that that actual drop would not be that significant. I would imagine the 12.5% that paid less than the 20% down would be the % affected. How many of the 20% down folks only just happen to have 20%?
Another issue is right now the jumbo market isn’t as well developed. Once there is a need shown, there will likely be a lot more jumbo products out there to further soften the impact. Afterall, this segment of the market is prob safer for the lending industry.
.
