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Drudge Retort: The Other Side of the News
Wednesday, April 01, 2020

The coronavirus crisis is already causing pressure on the housing industry that experts say could have an immediate impact on some consumers. According to mortgage broker Al Bingham, if you are in the market for a new home, you will need a top-notch credit score to get the best rates. ... He said many lenders are nervous about the uncertainty and borrowers with less than perfect credit are going to have to pay a premium to get a mortgage. "Some consumers are going to be priced out of the market."

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So prices for homes will probably fall if most buyers can't get mortgages. I'm torn on that, as a homeowner I want my property to increase in value but here in S. Florida rents are so high that many working people are priced out of the market. With something like the COVID19 Pandemic I don't think a credit score is going to be a really great indicator of the ability to repay the mortgage. I actually don't think there is much of anything lenders can really depend on because we are heading into "uncharted waters."

#1 | Posted by danni at 2020-04-02 08:26 AM | Reply

The longer this continues and more and more layoffs occur and more businesses close we are looking at the possibility of a collapse in both the housing and commercial real estate markets.

The near future could prove to be a great time to be a real estate investor. I wonder what current President who has not given up control of his businesses might be able to benefit from such a scenario.

#2 | Posted by johnny_hotsauce at 2020-04-02 05:25 PM | Reply

In case you've ever wondered why there's more empty houses than homeless people:
It's called "hoarding."

Mortgage Defaults Could Pile Up at Pace That Dwarfs 2008 finance.yahoo.com
This hard truth about the mortgage markets isn't being told www.marketwatch.com

#3 | Posted by snoofy at 2020-04-02 05:55 PM | Reply

#2 The US has (had) about 16 million people working in retail.
The Death Of Non-Essential Retail is going to put what, ten million people out of work?

#4 | Posted by snoofy at 2020-04-02 05:59 PM | Reply

In case you've ever wondered why there's more empty houses than homeless people:
It's called "hoarding."

#3 | POSTED BY SNOOFY

Bad time to be an AirBnB owner

#5 | Posted by johnny_hotsauce at 2020-04-02 06:02 PM | Reply

This is going to create quite the game of Hot Potato.

Problem is, we're already at the point where the real estate market kinda behaves like a check-kiting scheme anyway, to paper over the structural flaws that led to the last game of hot potato just twelve years ago.

The several hundred thousand homes that are going to be vacant after the occupants die of COVFEFE-19 disease notwithstanding!

#6 | Posted by snoofy at 2020-04-02 06:09 PM | Reply

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