Cash is king, but potential borrowers are pawns

The graphs above are several weeks old, but I held onto the image because it presents a compelling indictment of mortgage lenders.

I just wish there were a third graph that charts mortgage rates over the years.

With interest rates at low and then historically low levels starting in 2009, it stands to reason that the line representing purchase loans would turn up along with an increase in home buying activity.  Only because lenders imposed onerous standards on borrowers did that fail to happen.

To be sure, one explanation for the all-cash trend has been the choice that certain buyers could make.

They would include Continue reading