Prices are already down because CURRENT financing standards are a lot tighter, regardless of what is done here.
All this does is extend the start rate on about 25% of the subprime ARMs in the market...if this applied to EVERY ARM then I’d share your concerns.
“Nobody professed to understand the matter of the frozen railroad bonds; perhaps, because everybody understood it too well. At first, there had been signs of panic among the bondholders and of a dangerous indignation among the public. Then, Wesley Mouch had issued another directive, which ruled that people could get their bonds ‘defrozen’ upon a plea of ‘essential need’: the government would purchase the bonds, if it found the proof of the need satisfactory. There were three questions that no one answered or asked: ‘What constituted proof?’ ‘What constituted need?’ ‘Essential - to whom?’ “
See the three questions....
Personally, I was in the market for a new house in Arizona, but fully expected to have to wait a year or two for prices to return to some semblance of reality. Now I am not. My savings will be elsewhere - and mostly abroad...