Tighter lending standards by banks are disqualifying potential home buyers and preventing them from buying homes, at least according to analysts who point to that reason behind the second-quarter home ownership rate falling to its lowest level since 1998. The home ownership rate stood at 65.9 percent in June, its lowest in 13 years, the U.S. Census Bureau reports.
“Tight underwriting standards and the lack of a down payment are keeping a big chunk of buyers out of the market and other people are being displaced by foreclosures,” Wayne Yamano, director of research at John Burns Real Estate Consulting in Irvine, Calif., told Bloomberg News.
More at source: “U.S. Homeownership Falls to Lowest Since 1998 on Tight Lending,” Bloomberg News (July 29, 2011) and “Home Ownership Plunges to 13-Year Low, Bust,” Investor’s Business Daily (July 28. 2011)
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