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Mortgage Broker News | 11 Oct 2016, 08:15 AM Agree 0
Young professionals and starting families will find it harder to find their desired homes at reasonable costs, BCREA warns
  • Ralph Cramdown | 11 Oct 2016, 10:50 AM Agree 0
    Was the home "worth" $505,000? Or is that how much the family could/would pay with 5% down and a wheelbarrow full of credit? Was a mortgage of 6x gross family income likely to work out for them, long term?

    So many articles about the new rules have an unspoken assumption that home prices are somehow fixed and buyers will now have to "settle" for one priced 20% lower. This one at least changes direction halfway through and talks about "price pressures." No kidding. If prices are driven by credit (both purchase money mortgages and downpayments from parents' HELOCs), and if credit tightens, darn right there's going to be price pressures.
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