Quote:
Originally Posted by Winsor_Pilates
I think you'll see an end to 35 yr mortgages pretty soon, but is it stopping them before they become an issue; or trying to correct what will already become a major issue?
Only down about 2% from last year; and 10% from June is a good thing as June was to high and gradual decreases are evidence we're not heading for a bubble.
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Well, given that household debt to income ratios are at record levels and it's the banks themselves asking for government help again, I would suggest it's less of a pre-emptive strike than it is fixing a significant issue.
To be fair, I understand the banks having to ask the government for help. It's obviously enough of a concern for them to want to do something but they can't act individually or they would lose market share to each other. With the government changing the rules for them all, they can try to rein in the ridiculous borrowing without losing their share of the pie.
Well, even if things stay totally flat for another 6 months, that'll still be 10% down year over year. With average downpayments supposedly around 6%ish, kinda scary for new home buyers to essentially have it wiped out so quickly as mentioned previously.
Still seems to be more downsides than upsides for the next while imo.
