Wednesday, May 6, 2009

Prime mortgages get tougher to find

An article in the NY times today describes the slight rebound in sales -- that rebound is only in places that have seen prices drop MORE THAN FIFTY PERCENT from peak.

In other words, when prices go back down to pre-bubble, sales happen.


In addition, it appears that regular high-quality people looking for a norml mortgage re having a very hard time getting finance:

"....Sales in the top half of the market remain slow. The Federal Reserve reported on Monday that half of all banks recently tightened their lending standards on prime mortgages. Many would-be buyers, here as elsewhere, simply cannot get financing.

Sellers, meanwhile, are reluctant to lower their prices, preferring to bide their time. New construction is nearly nonexistent.

What drives the market here, then, are all those foreclosures....."

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