vreporter

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

AFFORDABILITY is misinterpreted and quoted out of context.
Affordability is an "immediate" status calculation with little regard for what may happen with the level PAST purchase date.
This assumption is based on funding (mortgage) rates being fixed after closing - acceptable.
This assumption then implies that the stable funding protects the valuation of the property in question - absolutely unacceptable.

Looking at it another way, AFFORDABILITY is what got us into the problem.

While current and future mortgage application requirements have/will increase, there is little protection for prices until prices adjust with inventory.

That balance is still grossly tipped in favor of falling prices.