If higher mortgage rates and tighter lending standards weren’t the dagger for prospective U.S. homebuyers, then recent bank failures would seem to have added new obstacles to closing deals.
But according to strategists at Goldman Sachs, the impacts in the residential housing markets from these events are likely be “modest” for potential homebuyers.
“To be clear, tighter lending standards will weigh on the residential mortgage sector,” chief credit strategist Lotfi Karoui wrote in a note to clients this week.
“But the net impact will likely be more modest than for other segments such as small business and commercial real estate loans.”
Among the factors buttressing the residential market from the crisis’ worst impacts is that mortgage lending is less sensitive to bank balance sheet pressures compared to other forms of lending.
Source : US Homebuyers to See Only Small Effects of Bank Crisis, Says Goldman Sachs