Bloomberg news reported today that according to a Federal Reserve survey of 98 banks there has been a “continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand.” Many potential home buyers have complained that it has been difficult to obtain mortgage financing even in cases where they clearly have the income to repay the loan and have generally good credit. This easing tread should make it possible for objectively qualified buyers to obtain financing.
The article notes that the easing has been predominately with regard to prime residential real estate loans. This is a definite positive, since we don’t want to go back to the times when anyone whose breath could fog a mirror could get a mortgage. In any event, the real estate market clearly will benefit from the greater availability of financing for quality borrowers.