Michael Shedlock’s article “Rate Cuts: Is It Two and Done?” examines the effects of the rate cut on the economy, and he offers his thoughts on why he believes that more cuts are to come, but not for the generally accepted reasons.
Mortgage rates have not helped borrowers one bit, and he quotes Professor Linden as saying that it is now easier to arrange a golf outing with Tiger Woods than to get a mortgage. Don’t believe it?
Read this latest article in MarketWatch titled “Unprecedented tightening in lending standards.” Since the pendulum always swings from one extreme to another, I was not surprised to learn that even borrowers with the best credit have to jump through hoops to get approved.
If that trend continues, real estate sales will slow down to a crawl, prices will further decline and the economy and job growth will be affected very negatively. As always, Michael’s article provides good insight and is a must read.