Main Street Credit Crunch Continues
The National Association of Realtors reported today that housing sales are suffering due to tight credit:
“In many cases buyers are waiting for greater access to affordable credit, especially in higher cost areas, but some are disappointed with what appears to be unnecessarily restrictive lending requirements.”
The NAR may think that banks are “unnecessarily restrictive”, but if the cash is no longer in the vault, then no loans can be made. Once a bank has blown all its money on real estate “liar loans” it has no choice but to be restrictive.
