Lenders are concerned over general economic conditions, and they are easing their credit standards to cope with the anticipated slowdown in market demand.
Fannie Mae said in an outlook report that more lenders expect to implement less stringent standards in the next three months for GSE eligible, non-GSE eligible and government loans as lenders report a drop in purchase mortgage demand.
“The drop in purchase mortgage demand also reflects the latest finding in the Fannie Mae National Housing Survey, in which the net share of consumers who reported that now is a good time to buy a home dropped to a record low,” the government-sponsored enterprise also said.
Doug Duncan, senior vice president and chief economist at Fannie Mae said, “Expectations to ease credit standards climbed to survey highpoints in the second quarter as more lenders reported slowing mortgage demand and increasing concerns about competition from others.”
“Lenders cited additional contributing factors such as diminishing compliance concerns and more support from GSEs, including clarification on representations and warranties and tools that provide greater certainty during the loan underwriting process,” he added.
Further, “Easing credit standards might also be due in part to increased pressure to compete for declining mortgage volume.”
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
Key Takeaways 'Greige' (subtle yet powerful) improvements pay off the best. This year's report reflects continued optimism for the housing market. Replacements beat remodels and exteriors beat interiors. The 2017 Cost vs. Value report by Remodeling magazine documents the national and regiona...
“But my Zestimate is higher than that”: 11 Things Sellers Should Know About Zillow's "Zestimate" calculations
Key Takeaways Zestimates do not take the finishes or updates into account -- the insides of the properties. Agents should describe to sellers how the Zestimate is calculated, and they can use the explanations on Zillow's own...
Over the past month, the Las Vegas real estate market has been literally flooded with would-be flippers, making up to 30 bids each per week. They are offering anywhere between 70 to 80 cents on the dollar on homes listed for sale around the Valley, hoping to get just one offer accepted so they can get started on th...
It seems our poor Veterans are getting hit from all sides these days. From long waits to receive urgent medical care, to decreased retirement benefits, to cutbacks on funding for new recruits, Veterans are among the least appreciated members of our society. And this appalling neglect seems to extend to home buying as...
Homeowners aren't selling, and the prospect of rising rates could encourage them to 'lock-in' and stay put Mortgage rates are expected to rise this year, aggravating the already-vexing problem of not enough existing homes on the market, according to a panel of economists speaking last week at the Inter...