From David Streitfeld at the NY Times: U.S. Housing Aid Winds Down, and Cities Worry
Streitfeld discusses the Fed’s Mortgage Backed Securities purchase program (scheduled to end next month), the housing tax credit (contracts must be signed by the end of April, and deals closed by the end of June), and the slight tightening of FHA requirements. Wow. Did anyone here see this coming?
Here’s my favorite excerpt from today’s NY Times:
“If the government were not to continue the same level of support, it would be very detrimental, like cutting the legs off a wobbling child and expecting it to run a marathon,” he said. “It’s very possible we’ll still be at this level of need five years from now.”
Now that sounds like a normal, healthy market doesn’t it?