Did I hear that he thinks 4.5-5% interest rates are too low? How much lower does he want these rates to go? And stated income loans? really? The problem is people cant actually document their income? Stated income got the nickname “liar loans” for a reason, and it wasnt becuase the people who traditionally got these loans have the last name of “Liar”.
The problem is that prices are unaffordable to the majority of buyers who would usually buy a given house (ie houses in the ghetto are not being bought by CEO’s). The Government and all the RE chearleaders can run around like idiots all they want, it doesnt make that any less true. When prices get back in line with fundamentals for the area, then this Crisis will solve itself.
And I am sorry, but what is some woman doing paying 97% of her monthly income to own a 700sqft LaJolla condo? Seriously?
