More lenders report easing of mortgage lending standards across all loan types according to a recent Fannie Mae third quarter survey.
The gap between lenders easing as opposed to tightening over the period jumped 20% reaching a new survey high for ‘net’ easing.
Doug Duncan, chief economist at Fannie Mae reported, “Our survey responses appear to reflect that lenders may becoming more comfortable with new lending guidelines coming into play. Overall, we expect that lenders’ tendency toward easing credit standards, together with relatively low rates and a strengthening labor market will continue to support the housing market expansion.”
The survey also reported that senior mortgage executives continue to be more optimistic about the economy than general consumers, and they continue to be less optimistic than general consumers when it comes to the ease of getting a mortgage today.
Bangor area Realtors report that the general easing of credit is a result of lenders confidence in the local economy and consumers confidence in the benefits of home ownership.