decline of REITs points to a future without

decline of REITs points to a future without much liquidity probably Wall Street being nervous about European debt problems. Of course you didn t need me to tell you that; anyone who owns a share of stock understands that Wall Street is pretty jittery these days. What about the residential actual estate industry? The Mortgage Bankers Association s weekly survey of house loan applications showed a decline in demand this week, dropping by 4.3% on a seasonally adjusted basis. Since audi airbag reset tool applications had popped the week before, it looks like the demand side is healthy but shouldn t the lowest charges in four decades be stirring up even more of an appetite? Lawrence Yun, the chief economist of the National Association of Realtors (an organization I ve been a member of), argues that lack of lending is constraining home sales. August pending home sales numbers were released last week, and the numbers were up from last year, which is positive. Still, Yun had some sharp words for lenders: “We continue to experience a pattern in which financially qualified home buyers, willing to stay well within their means, are being denied credit – a factor in elevated levels of contract failures,” he said in a release. “Based on the improving fundamentals of population growth, some job additions, rent increases and higher stock industry wealth, we should be seeing existing-home sales closer to 5.5 million, but are expecting just over 4.9 million etka 7.3 update this year. The unnecessarily restrictive mortgage loan underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy.” (GALLERY: The Grown-Up Homes of Teenage Stars) More broadly, it s not just genuine estate that s being affected. A survey conducted for FICO, the credit score people, by the Professional Risk Managers International Association tells a fascinating story. Bankers, it finds, expect a credit gap to continue between the amount of credit small businesses request and the amount that they receive. Specifically, 57 percent of bankers