Tight lending standards affecting home sales

Tight mortgage lending standards continue to affect sales for single-family builders across the nation, according to a survey released by the National Association of Home Builders (NAHB). More than half of the single-family builders surveyed indicated that lending standards were "tight" or "very tight," while only 11 percent indicated standards were "somewhat easy." No builders described them as "very easy."

The survey also asked builders if they had lost any sales over the last six months due to buyers not qualifying for a mortgage. Eighty-three percent answered "yes," and of these, the average share of sales lost was 9.7 percent. NAHB estimates that this 9.7 percent translates to 18,700 new-home sales lost because buyers were unable to qualify for mortgages.

Click here to read the entire NAHB press release.