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But housing doesn't affect that so let's get a little bit deeper here with a banker frank -- Tino is the CEO of north Jersey community banker says there is no better time -- Than to buy a house right now but that the recovery is still very tender.
Frank I've I've heard people say never a better time over the past year and a half.
I now agree that now what's the time but can people even get the loans right now or has the industry gone so far the other way.
-- it's a difficult environment clearly.
Banks are pricing loans to perfection.
People's credit scores have to be perfect -- -- down payments have to be large that property that they're buying has to make sense is difficult environment to get along today.
But that being said for those who can and those who do qualifying there's never been a better time the prices are low.
Land prices are low interest rates are at all time lows as we're seeing here today there's really nowhere for them to go but up from here.
And there's actually in certain communities.
You know -- and our markets.
Whether there are actually price wars starting to break out over new properties specifically and then in the new construction okay -- wars are good but you say that this recovery is very tender and it's still could be derailed short while.
-- a confidence if people don't feel good about what they see going forward that would -- the this recovery and any sort of spike in interest rates which could in fact the car.
If and it if no one was there to buy our bonds -- look what happened in Germany this week.
They saw a very very big movements in their ten year bond at something like that which happened here people would get spooked.
So I believe with interest rates stable -- here where they are today I think it's a great.
Well it it's played at.
You look at you say what I've got to buy now because these rates are unbelievably low pretend this brings you back to the issue of whether you can get approved -- the -- and neighbors -- I'm only partially retired but I had a but near two million dollar buyout and I still couldn't get a mortgage -- -- they harassed him.
I said well well what if what if what if there -- a lot of what it.
Yes and it's not just interest rates though -- there are other environments -- have been other environments for interest rates have been low but in this particular case interest rates are low and the property prices are depressed.
-- -- getting a good bye you're getting things that a huge discount from what the market was in any.
Point in the past.
On top of the fact that you have great interest rates to finance it.
Yes it is difficult for some buyers who qualify for those loans and that's a problem and it may mean more money down.
And that's one of the reasons why I think there is some sluggishness in this recovery.
Is that the credit standards are much more difficult or are more difficult today than they have.
And -- away they should be okay let's be realistic we got into trouble because credit standards was way to say exactly where we came from.
But it got too much religion another wait too harsh -- way to difficult in some cases but while that's the regulatory environment -- I supposed to be lending at this point.
Yes and and the argument I make every day is that every bank wants to make quilts that's not -- they've been -- in business to make loans that's the primary way in which they make money.
The regulatory environment however has put a sort of Pall over the lending business.
To the extent that people have to be very -- banks have to be very careful about what -- statement.
Francs or in -- north Jersey community bank I'm going to you step up thank you so much we have some break.
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