Finance for the USA? No problem, they said....

www.cnbc.com/2018/10/12/thousands-line-up-for-zero-down-payment-subprime-mortgages.html?__source=facebook%7Cmain

 

Interesting.... not heard of this.
I wish this was happening in Australia

I do know banks are now lending in Detroit. That's got to tell you something.

Let the good times roll.

 

This just go to show that people never learn.

 

This reminds me of the good old days of low doc and no doc.... for investors who work it.... there is real opportunity to make money. For those who lose their head... what can I say??

 

The big problem here is the 25% increase in the 30 year fixed. Basically we've had rates so low for so long....that people have freaked out and just stopped buying.

We locked in our 30 year fixed at 3.5% (they did get down to 3.375% at one stage) but the 30 year fixed at the moment is now up around 4.8% (1 year ago was 4.18% - Consumer Rates - NYTimes.com).

When you consider we probably have at least another 0.5% Fed increases (possibly up to 1% to neutral) you can see why USA banks are doing everything to stimulate any business they can.

There is also the issue of the east/west coast SALT cap that the Trump tax cuts implemented....but that's another story.

 

lol that the first woman they interviewed talked about how she lost her house in 2008.....and NOW thinks its a good time to get back into the market......

 

But seriously many lost their houses during this period right??

I see opportunity now, better if purchased in 2012

Perhaps buy and sell down take some profits off the table