The connection between slumping home sales and mortgage loans

Hal Morris, writing on his Grumpy Editor blog, wants to know why business writers have trouble seeing the link between lower pending home sales and tighter loan requirements.

Morris writes, “Many newspaper business writers fail to see that until home sales improve, display and classified advertising in the (formerly lucrative) housing category will continue to suffer, affecting their publications’ bottom lines.  Continued emphasis on sluggish home sales only prolongs the situation — and contributes to additional layoffs of fellow editorial staffers.

“So with so many loan sources displaying ‘out to lunch’ signs, home buying naturally is up against a wall.

“Tip from Grumpy Editor:  Rather than awaiting the next monthly figures, alert business writers should contact financial institutions, including those in their circulation area, and members of Congress linked to financial services committees to get their latest input — beyond remedies discussed for weeks — on immediate solutions to get out of the deep housing hole.”

Read more here.