THE NYT reported that the 30 year fixed rate residential mortgage may end and sooner than you think.
This staple of the US home buyers may just be another casualty in the Real Estate BUST.
Douglas Elliott of the Brookings Institute, " said that congress was being forced for the first time in decades to grapple withe cost of subsidizing middle class mortgages. The collapse of Fannie and Freddie took with it the pretense that the government could so so at no risk to taxpayers."
Not pleasant news for the residential real estate and mortgage brokers.
This" news" alone together with the concept of the coming required 20% down payment indicates to me that prices will have no place to go BUT downward. Home prices must become
"affordable" for the buyers.
What's evident is that the core structure of the residential brokerage business is in for a major changes.
And sooner than one think.
Bill McInerney
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