FDIC Quarterly Banking Profile Takes a Back Seat to Bernanke
Perhaps Rick Judson, the new NAHB chairman and homebuilder from Charlotte, N.C., read the FDIC Quarter Banking Profile and concluded that homebuilders cannot keep up with pent-up demand for new homes given the continued tight credit conditions for NAHB members.
According to Judson, builders are "expressing increasing frustration that they can't get access to construction loans to develop lots in markets where demand is on the upswing." This keeps construction workers sidelined and is frustrating potential home buyers and is slowing the housing recovery.
With the spring building season just around the corner, the NAHB is concerned that with inventories of new homes near record lows they will not be able to build in anticipation of demand because community banks are reluctant to lend.
Builders are also pointing out that creditworthy home buyers are having difficulty obtaining mortgages, which is resulting in cancelled home sales.If you are bullish on the home builder stocks this
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