If you have been following the Mortgage Mania saga on 3Oceans which looks at how fallout from the increasing numbers of homes bought with subprime loans are going into foreclosure, you might enjoy this tidbit from an article posted on Inman News on Tuesday. . .
Speaking via satellite to the International Money Managers Conference in Capetown, South Africa on Tuesday, Fed Chairman Ben Bernanke forecasts a slowdown on the nationwide housing industry as a result of tightening lending restrictions.
Excerpt from article:
“Tighter standards in subprime lending — along with bad publicity that may keep eligible borrowers from applying for loans — will continue to restrain demand for housing, Federal Reserve Chairman Ben Bernanke told international bankers Tuesday.”
Click here to read the complete article.
We are seeing it here as well. A couple of loan instruments that were available to an investor that I work with a couple of months ago are now gone. That hasn’t prevented him from being able to buy that million dollar fixer upper, but the increased carrying costs of his purchase are cutting into his profit, making “deals” harder to come by.
If you have been planning to purchase a home, and you are now finding that you qualify for less, or that you can’t qualify, post a comment and let me know.
Thanks for reading . . .Tags: Business of real estate, Buy vs. rent, Inman, Inman News, Loan Application, Preapproval, Prequalification, Real estate
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