The Real Deal New York

From the July issue: In the space of a year, the mortgage market went from a sprint to nearly a stop. Although the Federal Reserve has tried to stimulate the market by lowering rates and making it easier for banks to borrow money, brokers and economists have noted that developers, building buyers and consumers continue to struggle to get loans, particularly from large banks. In addition to the troubles in the primary market, as banks have struggled to stabilize their balance sheets and investors have stayed away, the secondary mortgage market has essentially disappeared. Taken as a whole, the credit crunch has led to a precipitous drop in the overall dollar value of building sales.