As lenders tighten their borrowing standards, fewer people will qualify for mortgages. Fewer qualified buyers can only mean that housing prices will slump further. Worst of all, economists don’t see much chance for a turnaround until mid- 2008 and possibly into 2009. Even before the credit crunch hit, softening home prices had turned into outright price drops in many areas, particularly markets that were red hot a couple of years ago. Prices of luxury homes, mostly immune to the slump until now, may be hit especially hard. Rates on jumbo mortgages have spiked to 7.46 percent, and some lenders are charging more than 8 percent. The Official Handbook for New Home Salespeople

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