Concerns over the stability of the U.S. banking system is spilling over into the housing sector as experts worry about credit drying up for home builders.
The collapse of banks such as Silicon Valley Bank and Signature Bank has spooked many investors who have withdrawn vast sums of money from regional banks and moved it to bigger financial institutions for safekeeping.
With an uncertain economic outlook, experts worry about the availability of credit for home builders and mortgage lenders, which could hurt the housing market.
Wall Street is anticipating tighter credit conditions for the U.S. economy in the months ahead. Goldman Sachs recently lowered its forecast for U.S. economic growth, expecting small and medium-sized banks to scale back lending, to preserve liquidity.