The Market Hick

Fannie, Freddie and the 4.5% Mortgage Myth

The whole idea of lowering financing costs assumes that price elasticity for buyers is still the same as it was in 2000-2007. It is not and THIS is the fatal flaw of the plan along with our rapidly changing demographics. We will continue to have an oversupply of homes for several years (maybe a decade)because not enough buyers are coming of age to take over the amount of homes that need to be sold as baby-boomers downsize or just move into retirement communities.