So the current mortgage rates are the lowest ever and buyers still won’t buy. Now what do we do?
The real estate industry is its’ their own worst enemy. The real estate industry has been complicit with congress in creating the current real estate debacle we let – and sometimes lobbied − congress to pass legislation that – in the long run – as we see now is/was harmful to real estate values and the market.
For years we’ve lobbied congress to give real estate SPEACIAL tax treatment − all to the detriment of consumers and the industry. We’ve propped it up {incentivized it with crony capitalism} with mortgage interest deductions, real estate tax deductions, “FAKE” ARM loans {to entice unqualified buyers} and for the last 10 years ARTIFICIALLY low mortgage rates.
30 year mortgage rates should be in the 7-9% range. I purchased my first home with a 14% ARM loan and the rate did not stop me. 25 years later I’ve purchased scores of homes with rates of 5-15% and not once did I think of the subsidies, the mortgage rates, the deductions… when making the purchase. The ONLY thing that mattered was – was is a good purchase {good neighborhood, good value, good neighbors}
When we quit subsidizing real estate then the true value, the worth of its existence will be clear – a piece of land a home you can call your own.
Ban all real estate subsidies, { 20+ year phase in} raise mortgage rates {during the next 5 years} and make real estate value for its own sake and not some subsidy or artificial enticement mortgage rate.
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