Different yet similar to last week’s post: https://legacywealthmgt.net/when-tax-the-rich-backfires/
The X-post by @JimBianco below points to “first time buyers” and “Qualifying income” and securing mortgages.
Why are home prices out of reach?
Why did home prices accelerate so dramatically in 2022? Remember? Governments huge infusion of “free covid money” …
Again, thank you government. They refuse to let free markets and capitalism work. They do not know what is best at least 90% of the time. Crony Capitalism isn’t true capitalism.
IMHO 50-year mortgages are a horrible idea.
Here is Jim Bianco @biancoresearch.
“Here is the problem in one chart.
Non-homeowners do not make enough money to qualify for a mortgage. They make it work by extending themselves through borrowing the down payment (from family/friends) or assistance programs.
50-year mortgages and/or Fed rate cuts are not going to get the orange (qualifying income) and blue (median income) to converge.
What will get them to converge is lower home prices.
The problem is that 86 million homeowners in the United States do not want lower home prices.”
Jim makes a great point in the number of homeowners that don’t want the two lines to narrow.
So, guess who will try to make that happen while not understanding how market forces, printing money and currency wars work? …The government “solution” is in our future… If I was a betting man, I would lay money on this happening sooner than later.
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