We Need More Mortgage Defaults. Right?
Home prices in my market (AZ) have been increasing 5 to 7% every single year for at least the last 5 years. This is healthy growth and certainly more sustainable than 10%+ growth per year. Is it frustrating when some of my clients can’t get a loan? Sure, but I take a longer view. I don’t want to see easy credit return. Like a good bender, it might be fun in the short term, but the hangover is always imminent. I see plenty of clients get loans through downpayment assistance programs and other grant programs that are designed to help borderline borrowers get a home. What MARKET indicators are you seeing that tell you that more people need to be getting loans? Stagnant home prices? No. Excessive inventory? No. I personally applaud the lenders for their restraint this time around.
Tom, I agree with you. I’m not a big fan of down payment assistance or lowering the requirements for obtaining financing. I really didn’t see much good come of that and anything we can do to avert another mortgage crisis would be prudent.
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