You know what's strange about government incentives like the $8000 tax credit and low mortgage rates due to government purchase of the loans from banks? It seems to me that if you give all the home buyers an extra $8000 that prices of the homes they can buy will go up $8000. And after that incentive expires and buyers don't have the $8000, prices will fall by 8000? By my math that's a wash.
It's the same with low interest rates. If people could borrow less, prices would fall so they wouldn't have to borrow as much. The payment would be the same but the goverment wouldn't have to get involved.
I think I'll just wait till rates rise and the incentive are gone. Then I'll buy at the new lower house prices.
Housing thaw ahead?
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