Well it seems that most news outlets are missing the boat. In my observation the high loan limits role back is the next left hook that is about to hit the housing market. I mean lets look at the situation for a minute. We want to make it harder and more expensive for those that can afford to buy homes in the hire end markets that in turn usually stimulate the economy because their more likely to be the ones to remodel and purchase new furniture for their new expensive homes? How does that make sense at all? I mean first time buyer's are being hit with so many road-blocks already that the numbers are showing a decline in the home sales and price declines. Do we really want to make things worse by limiting those who can buy? It just is silly to use a nice word that the talk is that they won't extend the current loan limits automatically as a tool to help the housing recovery. I mean we hear all the time how housing is so important to our economy then why are we going to kick it while it's on the ropes. Yes for a short minute last year it seemed like things were looking up but look at the numbers now and anyone can see that was just a fake out. Kind of like when your car isn't working and you take it to the shop and as soon as you get it there all of a sudden the problem is gon. The mechanic can't find the issue but as soon as you drive away it starts up again and this time it's worse. That is what the housing market has done. Last year it faked everyone out for a short minute but it's wounded and it's going to be worse this time around if it goes down again. If you read all the indicators it is going down. Don't get me wrong like everything there is exceptions to the rules and there is areas that are improving but trust me if you make it harder then it already is to qualify for a home mortgage in the hire end market people are not going to willfully take cash that is earning any kind of rate of return and be happy to dump it in to a property with no rate of return in the near future and realistically the possibility of losing value in the short term. Now lets not be stereo typical but if we look at the numbers and data those who are buying in the hire end market usually are a lot more educated when it comes to the financial markets and are not just buying because they loved the home. They usually have access to financial advisors that are in their ear telling them what a bad move it is write now to jump in with all their available cash in to a huge purchase. I really hope that this like most things lately is just a way for politicians to gain publicity. I mean that they wait till it's down to the wire and then they make some big speech and extend the loan limits so they can look like the super men of the economy. I mean I understand we as a country are in a horrible spot with our national debt. I know we all or most want less government regulation and or involvement in the housing market. Let's be real for a minute though. The government is their for our benefit and currently it benefits us for them to stay active in backing mortgages with hire loan limits. No one really wants to buy our debts like before but who can blame them? I read a great book about how Cd's and other things of that nature were created it was amazing how little it takes to convince people to buy products they don't understand. It's all in the rate of return and the perceived minimal risk you can convey at the point of sale. So for me my vote being a real estate broker who has done loans in the passed for years and is currently working on my NMLS license and a broker for insurance. I vote keep those loan limits high or suffer another downturn that will not only effect hire end markets but the entire industry as a whole.
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