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Thursday, March 10, 2011

New Rules for First-Time Home Buyers

You can read the detail but here are the bullet points.
  1. New rule: Put more money down.
  2. New rule: Stay for a decade.
  3. New rule: Brace for competition.  
OK, I have problem with number 3.  There so factors pushing down home prices, I.don't think it will pan out in this new market  You have unemployment issues,  inflation, higher mortgage/interest rates, 7-10 million homes in shadow inventory, and harder income and loan qualifications.  There is not a lot a people that will rush out and purchase a home especially when you could earn 5% in the bank again, which will happen when Federal Reserve is forced to raise interest rates.
Read it all.

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