Saul Anuzis: Federal Reserve gives with one hand, takes with the other
A recent report reveals that homebuilders face one of the most significant credit crunches in a decade. An analysis by BankRegData of the most recent data from the Federal Deposit Insurance Corp. shows the United States has experienced one of the most significant year-over-year decreases in residential construction lending by banks, with amounts dropping from $102 billion to $92 billion for the quarter that ended in June.
This reduction will have repercussions throughout the economy. It will likely exacerbate the affordable housing problem as scarcity supplements the price increases that higher mortgage rates have caused. Now, it seems the same Federal Reserve that hiked mortgage rates that caused hardship nationwide has a new plan.