Banks' Skittishness Limits Impact of Low Mortgage Rates

83% of U.S. banks are much less or somewhat less likely now than in 2006 to provide mortgages to households with relatively low (620) credit scores and a 10% downpayment, according to the Wall Street Journal. Thus, despite the Fed's efforts to stimulate the economy by easing credit, "Monetary policy is having no effect on the vast majority of people," the newspaper quotes Fed researcher Paul Willen as saying.

Source: Fed Wrestles with How Best to Bridge U.S. Credit Divide