One of the main reasons buyers make large down payments it to get lower mortgage rates. With this new rule, buyers now have an incentive to make lower down payments. Plus, its easy to screw up your credit score to qualify for a lower rate. So it's taxpayers who'll foot the bill.
Originally tweeted by Peter Schiff (@PeterSchiff) on April 20, 2023.
Note: I think there is a role for government mortgage provision. But playing with a pricing system which affects everyone in order to help a pocket of people with poor credit shows incredible hubris. Plus it will make everyone worse off simply so some people can feel like the are doing something.
Home Economics 