Financial markets returning to normal
Abstract:
The last headline report of a multi-billion dollar loss on mortgage related securities was more than month ago. Interpret this as evidence that the financial markets are returning to normal for people and companies seeking construction financing. There will still be reports of mortgage related losses among lenders late to acknowledge their bad investments or whose initial write-off was not big enough. But the sum of these will no longer be large enough to abruptly boost rates or reduce availability for construction borrowers.
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The last headline report of a multi-billion dollar loss on mortgage related securities was more than month ago. Interpret this as evidence that the financial markets are returning to normal for people and companies seeking construction financing. There will still be reports of mortgage related losses among lenders late to acknowledge their bad investments or whose initial write-off was not big enough. But the sum of these will no longer be large enough to abruptly boost rates or reduce availability for construction borrowers.