Feb 29, 2012
Low prices, lots of inventory, miniscule interest rates… what’s missing? Oh, yeah
29 Feb 2012
Posted by Andrew Kantor
Low mortgage rates and great prices aren’t enough to get people buying homes — so says Fed chairman Ben Bernanke in his testimony before the House Committee on Financial Services. That’s because too many people lack the cash for a down payment, and even the ones that have the money are skittish about their jobs.
Or, as Bernanke put it,
[M]any potential buyers lack the down payment and credit history required to qualify for loans; others are reluctant to buy a house now because of concerns about their income, employment prospects, and the future path of home prices.