Q: How do all these recent bank failures affect housing? Carl, Weehawken, NJ A: Lending across the board may get tighter in the wake of the failures of SVB & Signature. However, mortgage loan underwriting has been much more measured and responsible since the 2008 financial crisis and mortgage interest rates have recently dropped which may entice more home buyers who may have been waiting on the sidelines to buy a home. Fannie Mae’s Economic and Strategic Research (ESR) Group has raised its first-quarter 2023 GDP forecast due to stronger-than-expected economic data. It also anticipates a modest recession in the second half of 2023. Ongoing banking instability may negatively affect jumbo mortgage loans and residential construction loans but residential real […]
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