NAR: B&C Tightening Hurts Home Sales

Tighter underwriting of subprime loans could reduce new- and existing-home sales by up to 3% over the next two years, according to new projections by economists at the National Association of Realtors."I would expect home sales to fall by 100,000 to 250,000 annually during the next two years due to tighter underwriting practices -- slowing the nation's housing recovery," NAR chief economist David Lereah said. He also noted that a projected flood of foreclosures is "problematic," contributing to already higher inventories of unsold homes on the market. Previously, NAR economists projected that the turmoil in the subprime market would reduce home sales by 40,000 a year. The NAR can be found online at http://www.realtor.org.