How the Coming Credit Crunch Could Harm the Economy and Real Estate Prices
Money For the Rest of Us
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The Impact of Banks Pulling Back Their Lending
Interest rates have gone from close to zero to approaching 5% in just over a year. Bank boards are going to have to discuss whether it still makes sense to be an independent company. Banks provide 58% of commercial mortgage loans and 32% of loans on multi-family housing. If banks are being stingier in terms of their willingness to lend, that could put downward pressure on real estate values.
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