Smalltownbanker

Homeownership: The Root of All Evil, or the American Dream?

Fixed mortgage rates are excellent. Rates are currently within .625% of a lifetime low for you so I am not sure why you are whining. Homeownership is and will remain the American Dream. One reason it is a dream is because everyone is not capable of handling the responsibility that goes along with it. The head of Freddie Mac expressed that the other day and everyone wanted to hang him.

It is critical that we return to realistic lending based on common sense underwriting, reasonable debt ratios, required down payments and strict credit criteria. If a borrower can't meet the requirements they will have a little work to do. They may have to actually wait and work towards the achievement of that "American Dream." I think that is why it is called a dream...

By the way if we do what I have stated above you will continue to see home prices fall another 25+% but that is reality. We have to stop living in an American "Dreamworld" and come back to reality or we will begin repeating this cycle before the current one ends.