Defaulting banks - where will it stop?

[Greg Burnham]

It is an interesting fact that never have I seen housing prices fall so drastically AND interest rates fall similarly drastically at the SAME time! Normally,
as housing prices fall, interest rates rise. And vice versa: as housing prices rise, interest rates fall. However, in the current market housing prices fell
AND interest rates fell to all time lows.

So, why can't people with good jobs, great credit scores, and over 30% cash to put toward a downpayment still oftentimes fail to qualify for a loan? This
is contrived--without question, in my view. If one talked to the majority of San Diego Real Estate Agents I would not be surprised if they agreed with what
I wrote. Yet it is disturbing.