But there are still mortgages being offered and loans are being made. It just depends on WHO you work with. I use PHH Mortgage services for my clients and have not had a problem with those who qualify still getting their mortgages. My people are being funded and they are still purchasing homes. PHH was also one of the few lenders that never got into sub primes nor did they lend to those who couldnt afford it. Maybe that is why they are not in financial trouble now.
Basically we are getting back to the times where you had to have good credit and some actual money in the bank to qualify for a mtg now. Houses are going back to the REAL value in many areas, not the over inflated crap a few years back.
Those who cant afford to purchase now will rent. Now is the time to actually invest in the RE market if you are able to. People will need to rent and someone has to own those homes.
Banks are ready to make deals too on homes. I have negotiated many short sales lately and I am amazed at how little they are willing to take in order to get rid of the house. One bank told me they are cancelling all forclosures on homes they get ANY offer on. So you can really get a bargin if you know what you are doing.