[jiggyboy]

Local mortgage brokers say borrowers are taking out these loans because it is the only way they can afford to buy a home today.

This statement is beyond transparently stupid. If the only way to buy a home is with a suicide loan, then you can't afford that home. It's that simple.

And if home sales are stagnating, it ain't directly because these loans aren't available, it's because the price of the home is too high. That's simple too.

[ex-Texan]

Notice #2 is signaling the realtors and mortgage brokers on FR to jump in and complain about the news report. 'Nuff said.

[nmh]

"Local mortgage brokers say borrowers are taking out these loans because it is the only way they can afford to buy a home today. "

You: This statement is beyond transparently stupid. If the only way to buy a home is with a suicide loan, then you can't afford that home. It's that simple.

People do it ALL THE TIME - primarily YOUNG people. They are strapped financially and push it to the limit to get the "forever house" NOW. They HOPE for raises to ease the financial stress. They don't want to acknowledge that they can't afford it. They are shallow, yes stupid people, that want to "look successful" and "have it NOW."

"And if home sales are stagnating, it ain't directly because these loans aren't available, it's because the price of the home is too high. That's simple too."

Home sales are slowing because it runs in cycles - typically five year cycles. It was on an UP cycle and now it is leveling off. People paid the peak prices - more than the house was worth. Now some are starting to PAY the higher interest rates and CAN'T.

You are fortunate that you have COMMON SENSE. Many people DO NOT HAVE COMMON SENSE and wish to live in denial of what they can really afford. It's an attitude out there - INSTANT GRATIFICATION. They want what their parents worked for all their lives - NOW!