Raising the conforming loan limit encourages affluent borrowers to buy expensive homes, the opposite of what lawmakers intended when the subsidies began.
In order to spur lending to lower and middle income Americans, the GSEs and FHA provide loan guarantees to mortgage loans under the… – The conforming mortgage loan limit should NOT be raised
California is not in another housing bubble yet, but prices are high relative to income thanks to low mortgage rates.
Nobody wants to be a peak buyer, so fear of a housing bubble stops some people from buying homes, but are these fears well founded? Are we inflating housing bubble 2.0 (actually… – Is Coastal California housing at the peak of another bubble?
Lower wage earners, including most who don’t graduate college, may never earn enough to save for a down payment to own a house in California.
When I first wrote about the housing bubble back in 2007, I argued forcefully that it was not possible for everyone to get priced out of the real… – No college education means no house in Coastal California
The three main measures of financial performance for rental real estate are capitalization rate, cash-on-cash return, and internal rate of return.
When people buy a personal residence, they often solace themselves that the high prices is warranted because the property is a good investment…. – How to calculate real estate investment returns
Interest-only loans won’t inflate a new housing bubble if they remain relegated to the fringes where few borrowers use them.
Every loan product has its place, even the toxic loans of the housing bubble: Option ARMs, interest-only, reverse mortgages, adjustable rates, high LTV, subprime…. – Interest-only mortgages return
Assets the provide periodic cash payments provide the greatest utility to those who want to live a carefree life.
Peace of mind is an underrated and undervalued emotional state. Most people choose lives of speculation, competition, and make believe, erroneously believing if they arrive at some … – Unencumbered cashflow is best measure of real wealth
The collapse of the Chinese stock market may precipitate a repatriation of capital back to China triggering a selloff in California real estate.
The Chinese government and central bankers operate a Ponzi scheme to accelerate economic development to help China catch up to the rest of the world…. – Will the Chinese stock market collapse impact US real estate?