posted on Nov, 6 2008 @ 03:53 PM
1. I'm glad to see housing prices continue to decline. They veered off their natural curve (at least here in the US) in the 90's, making the
"American Dream" of owning your own home far, far more costly than it ever had been before. We went from generations where a middle class worker
could manage to put his family into a 3 bedroom home in a nice neighborhood without crippling his finances for the next 20 years to a generation where
a middle class worker and his middle class working spouse could barely manage a payment on a small 2 bedroom house in a crappy neighborhood without
having to sign a mortgage which not only ensured they'd have to pay icrementally more every year, but also guaranteed they'd be in hock for 30 years
or more. When home prices are back down to the point where a man can once again afford to buy a nice place for his family based off making the median
salary for whatever area he works in without having to put 2 year's worth of salary in as a down payment and without having to pay $1500 a month for
30 years, then I'll say home prices have dropped enough and need to stabilize.
2. That said, when lenders refuse to pass the savings of a rate cut on to their customers, they should automatically NOT be eleigible to benefit from
those rate cuts either. Leave the mortgage lenders at the previous, higher fed rate and allow the lenders who work for their customers rather than
against them to benefit from the lower rates.