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Originally Posted by rshoffer
This is impossible to guess because the entire game has changed. It's Friday Morning, 645am, Sept 26th... wash Mutual has just failed... CNBC quote... "NO ONE IS LENDING ANYONE MONEY"... since not everyone who moves here pays cash for their home OR if they did, t  hey got the cash from a buyer of their Northern home who LOANED the money to buy it, well..., the entire machine is gonna grind to a halt. |
There seems to be contradictory views on the availability of mortgage money. Here is what is reported at bankrate.com:
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Qualified borrowers can find conforming and FHA-insured mortgages easily. Jumbo mortgages are more scarce, but available. Rates went up in the last week, which is another way of saying that credit is tighter. But the mortgage marketplace isn't frozen, at least in part because of federal intervention.
"There's almost no difference in the availability of money compared to a year ago, with the exception of jumbos," says Jim Sahnger, mortgage consultant with Palm Beach Financial Network in Stuart, Fla. "The main difference is that you have to provide documentation, such as W-2s, tax returns and bank statements. Welcome to the full-doc world."
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I suspect that this view is more accurate than the view that "No one is lending money". Just look at the current mortgage rates - they average less than 6% for a 30 year mortgage. Last July they were in the high 6's. If money was that tight, one would expect the rates to be going very high rather than lower. Also, if some sort of a deal in Congress can be worked out, money should flow even more easily.