10:54 a.m.Fed bans risky mortgage practices
The above headline from MarketWatch
There goes a bunch of future home sales. We should eventually find out what people really can afford to pay based on verifiable income.
The problem is that we have trillions of inflated loans out there based on unsustainable pricing. The next few years could be really tough as we wash out the toxic debt and bring back realitistic pricing.
Just another example of it getting harder and harder to borrow money. Expect home sales to plunge for a while. In the end we will be better off.....I think.