John Preston

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

Why is that the most commonly discussed solution is a "negative"...lowering prices...or rates....??

Mortgage rates, currently in the mid-5% range, are really quite nice....prices are certainly lower than 2006....

Why is it that no one ever talks about raising income levels...????

Income drives purchasing power and value.

One of the little discussed apects of the credit expansion over the past 15 years is that employees were able to "improve" their lives through borrowing...and employers may have gotten a hall pass on wage growth....

It will be interesting to see how employee / employer salary discussions work out in the future....