Money Money Everywhere

Having trouble selling your home? Have banks been less than receptive to borrowing you money? A recent survey sheds some light on what may prove to be the undoing for any recovery in the home sale industry. .

According to those who have attempted to secure several types of credit and mortgage products over the past year, a majority found it to be more difficult, according to a survey by accounting firm Deloitte.

Of those who applied for a home mortgage, 67 percent found it more difficult, for a home equity line of credit (HELOC), that number was 65 percent. Personal loan applicants weren’t much better off, with 62 percent finding it harder to get credit.

“Given that more than 90 percent of those surveyed believe the U.S. economy is experiencing little or negative growth, it is not surprising that consumers are restricting spending and delaying large purchases,” said Jim Reichbach, Deloitte’s Financial Services industry leader. “Quite simply, they do not want to extend themselves further. At the same time, banks have limited access to credit for some consumers, while more aggressively targeting the better credit-quality consumer.”

Among other findings of the survey:

Three out of four respondents reported they are not at all likely to buy a home in the next year, given the current economic environment, and 69 percent are not at all likely to refinance an existing home. On the other hand, 69 percent are not at all likely to sell a home, potentially pointing to a continued stagnation in the housing market with both buyers and sellers reluctant to make a move.

Of respondents who have a mortgage, 91 percent have made their mortgage payments either early or on time over the past year. There is light at the end of the tunnel, as 62 percent indicated they thought their financial situation would be better, or the same as it is now, by this time next year.

Deloitte commissioned the study from Harris Interactive, interviewing a nationwide sample of 2,019 U.S. adults from June 5 through 9, 2008.

Source: RISS Media