| Comment | I mean, the recession isn't in any way tied to housing value or economic fundamentals, it's the virus. The criteria became a lot tougher after 2008 because that recession was directly caused by weak lending criteria (and in part the new financial regulations designed to prevent it happening again forced the banks to be tougher on lending).
If anything, if you're in a reasonable position to borrow for a house in the coming years, banks are going to be even keener to lend to you because they're going to be making fuck all returns from other instruments, with stock and bonds going nowhere.
They're naturally taking a very risk-averse position right now, because we really have no idea what the length of the CV19 depression is going to be, but once that uncertainty is resolved I'm sure that lending will be back to normal - albeit with the possibility of having to deal with a hell of a lot of people who have defaulted in the meantime. |
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