Obviously, no relief or reset has come from the exposure of title and mortgage fraud. It is unlikely (at this point) that any such thing will occur under current paradigm. Mortgage rates – despite the (alarmingly) rapid rise in Treasuries recently -- remain low compared to historical standards. As higher debt service load levels are untenable for the government, interest rates CANNOT be allowed to rises substantially (see PIMCO boss’s thoughts on the matter recently). Repealing the income tax credits for mortgage payments does not look imminent. Despite their zombified state, the government loan guarantees afforded by Freddy/Fannie are still around, exerting influence and buying up loans.
So how DOES one approach a house purchase with the knowledge of the above, but in light of the ongoing end of the G(reat)K(eynesian)E(xperiment)? What is the calculus for possible prospects under a variety of potential future scenarios?