Don’t forget to buy your tickets for the I.O.U.S.A. Screening GTG
Thursday, August 21st at 8:00pm
AMC Clifton Commons 16
405 Route 3 East
Clifton, NJ 07014
Tickets can be purchased online, click here.
Housing prices will fall more than 30 percent before the market recovers and banks will continue their reluctance to lend until the credit crisis clears up, Oppenheimer analyst Meredith Whitney said on CNBC.
In a wide-ranging interview, Whitney said the housing deterioration will be worse than even the doom-and-gloom predictions that already have circulated regarding the market.
“There’s one obvious area where the bad news isn’t all out yet, and that’s with home prices … Home prices are going to fall much more than people expect,” she said.
“I think it’s going to be well worse than 33 percent, and here’s why: If you look at the futures market, it’s indicating a range right around between 2002-2003 levels, when home ownership rates were actually higher, but fewer people can qualify for a mortgage because you’ve got to put 20 percent down, and that’s a lot of money for people,” she continued. “Furthermore, then you’ve got to find a bank to lend to you, because, Countrywide’s not lending to you.”
“If you don’t need capital you can get capital. If you need capital, you’re not going to get capital,” she said.
The banking and housing industries will only recover, Whitney said, when banks start feeling comfortable enough to lend again.