US Home Prices Expected to Drop Additional 6% to 8%

Tight lending practices accused of sidelining home buyers

U.S. home prices will probably decline an additional 6% to 8% before bottoming, Pacific Investment Management Co.’s Scott Simon said.

Potential home buyers are being kept on the sidelines by policy makers tightening rules for government-backed loans and banks being more restrictive than required by Fannie Mae, Freddie Mac and the Federal Housing Administration, Simon said in a radio interview on “Bloomberg Surveillance.”

(More on falling housing values . . .