I don’t know why it would be unexpected if banks are expecting customers to come up with down payments and other methods of slowing down the ability to finance a mortgage. In the banks’ defense, why should they loan to those who aren’t good credit risks???
If the bulk of houses are on the low price end, and if those loans are harder to get, it doesn’t take a rocket scientist to predict a drop in sales.
These people blow my mind.
I am closing on a purchase and sale of a house. I am borrowing 25% of its appraised value. It is amazing how much info the bank wants for this mortgage. They would MAKE $200,000 if I defaulted on my debt.