NJ bank head blames news media for “crisis of confidence” in housing market

TRD New York /
Aug.August 10, 2011 05:55 PM

Frank Sorrentino, chairman and CEO of North Jersey Community Bank, appeared on CNBC today to discuss the national housing market (see video above). Though mortgage rates “are probably the lowest they’ve ever been” and U.S. housing prices are “incredibly low,” Sorrentino said “a crisis of confidence” is preventing consumers from making purchases. “People watch the news all day,” he said, “but if they would step back from that noise and they would look at their situations, [they would see] now is a really great time to buy a home.”

With the 30-year mortgage rate at 4.39 percent, mortgage payments would likely be less than rents in most markets. But the uncertain direction of the economy, compounded by a frantic media climate are blinding consumers to those realities, he said.

Sorrentino also said his bank has maintained a consistent policy of requiring a 20 percent down payment, so it has been less affected by the “market gyrations.”


Related Articles

arrow_forward_ios
(iStock)

A foreclosure crisis is looming — but here’s what’s different from 2008

A foreclosure crisis is looming — but here’s what’s different from 2008
Sales of existing homes in the U.S. hit a 14-year high last month, according to a new report. (iStock)

US home sales hit 14-year high

US home sales hit 14-year high
An increase in mortgage applications came despite interest rates ticking up (iStock)

Applications for home mortgages surged last week

Applications for home mortgages surged last week
United Wholesale Mortgage Mat Ishbia and Gores Holdings IV CEO Alec Gores (Photos via United Wholesale Mortgage and Gores)

United Wholesale Mortgage goes public with $16B valuation

United Wholesale Mortgage goes public with $16B valuation
(iStock)

Banks required balloon payments, stayed mum on foreclosure moratorium

Banks required balloon payments, stayed mum on foreclosure moratorium
Fed Board Governor Lael Brainard (Getty, iStock)

Fed wants banks to step up lending in low-income areas

Fed wants banks to step up lending in low-income areas
Wall Street investors are prepared to buy and turn single-family homes into rentals when forbearance programs expire and homeowners look to sell. (iStock)

Wall Street investors bet on single-family rentals as mortgage payments stack up

Wall Street investors bet on single-family rentals as mortgage payments stack up
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...