Tightening Mortgage Standards Won’t Derail Housing Recovery
November 21, 2007
The tightening standards for home mortgages will not derail a national recovery in the housing market, according to a study by the National Association of Home Builders. However, it will complicate the system for a while.
The impact of the new standards on housing markets comes in two forms. First, tightening lending standards have reduced the availability of some loans and raised the price to riskier borrowers. Second, it creates the potential for a cycle of defaults and price declines, depending on the local home price environment and strength of the local economy, the NAHB study revealed
Posted in All Things San Diego, Lending, Local Business, Real Estate
Loving the San Diego Coast!
