Bloomberg has a good article on the reality of mortgage lending.
By Daniel at 29 June, 2009, 10:17 am
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It is talking about throwing a bucket of cold water on things, but all this talk of “hope” and “recovery” is nothing more than a concerted attempt to make perception into reality. There’s a lot of collusion going on there. You know, the actual reality really bites.
HOUSING IN PERIL AS OBAMA FAILS TO GET FINANCING BREAKTHROUGH
June 29 (Bloomberg) — Driving through Riverside, California, Bruce Norris pointed to a half-dozen empty houses with “For Sale” signs stuck in untended lawns that he said investors might buy if banks would just extend some credit.
Four months after President Barack Obama pledged $275 billion to shore up home sales, the engine that powered every U.S. recovery since 1960 is stalled. Bankers’ reluctance to finance buyers who won’t live in properties is one barrier to a turnaround. Stricter qualifying rules and a rise in the cost of residential loans to 5.42 percent have impeded new mortgage lending, which is at a 13-year low. An inventory of 2.1 million unoccupied houses on the market, created by the fastest foreclosure pace in history, may be a drag on a revival.
…article continues…
http://www.bloomberg.com/apps/news?pid=20601109&sid=aiZMzULhjTIo
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