Here is the statement in question: "Builder optimism has eased as well, reflecting still-tight credit conditions and limited availability of lots. Confidence dropped in May to the lowest level of the year, according to a gauge of builder sentiment from the National Association of Home Builders/Wells Fargo."
Let's investigate the claim of "still-tight credit conditions".
Net Percentage of Banks Tightening Credit for Prime Mortgages
Net Percentage of Banks Tightening Credit for Subprime Mortgages
Unfortunately there are gaps in this data series.
Net Percentage of Banks Tightening Credit for Nontraditional Mortgages
Credit conditions for prime mortgages are anything but tight. There is tightening in the subprime arena, but gaps in the data series make it difficult to discern from when and where.
Moreover, after these price runups, banks should be concerned about subprime!
There is some tightening in non-traditional loans, but overall, the claim of "still tight" mortgage lending is false.
For more on housing, please see ...
- New Home Sales "Better, Not Strong", and Regionally Very Uneven
- Existing Home Sales "Rebound": Headline Hype vs. Reality
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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