Saturday, July 24, 2010

ONE - TWO PUNCH FOR HOME BUILDING INDUSTRY

I'll sell you my chance to be a home builder for $5 as that would probably all the profit I could make building homes right now.

The Fed has dealt the housing market the latest one - two punch that is keeping small home builders biting their nails wondering where the next customer can be found. First, the tax credit has ended and that put a freeze on new construction and then in the latest bit of irony for the home builder, President Obama signed the financial reform bill.

Now banks and mortgage lenders will not only check to make sure an applicant can make the payment on their new home, they will probably be asking for medical history and other things just to make sure they don't get penalized if they make a loan to someone that has to file bankruptcy in the future.

Banks have plenty of money to lend, they're just afraid to do it.

Like I said, that $5 is looking mighty good right now.

No comments: