JPMorgan Chase & Co. (JPM), Toll Brothers Inc (TOL): The Housing Boom That Skipped the 99%

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All this doesn’t bode well for a true recovery. Housing experts David Blitzer, Robert Schiller, and Karl Case note that, despite some gains, many issues remain  that will keep the market from regaining its healthy glow — including a lack of financing.

Unfortunately, this last headwind doesn’t show any signs of abating, since banks have been tight with mortgages in the current low-rate environment. Even with mortgage rates rising, stricter regulations regarding mortgage lending are scheduled to go into effect next January, courtesy of Dodd-Frank, and they will likely slow the already snail-like pace of mortgage originations.

Schiller notes that the housing market is trying to crawl out of a very deep hole, and it will take extra time to mend. In the meantime, however, the current housing revival falls far short of the type needed to bring about a lasting recovery.

The article The Housing Boom That Skipped the 99% originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Zillow Inc (NASDAQ:Z). The Motley Fool owns shares of JPMorgan Chase & Co. (NYSE:JPM) and Zillow.

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