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
A seller has to consider the amount of time and endless follow-up devoted to selling a home Key Takeaways Poor and incomplete presentation of a listing when selling is setting the stage for a home to be incorrectly perceived and potentially undervalued in the marketplace. Ultimately,...
The supply of single family homes for sale in Las Vegas keeps dwindling at an alarming pace and average home prices are inching upward again. As of June 4, 2012, only 3.923 single family homes remain listed in the Las Vegas MLS as active (not under contract) in Clark County. At the end of April there were 4.594 homes a...
As Realtors we are programmed to go the extra mile for our customers. It’s all about providing superior service, right? And Las Vegas real estate is super competitive, so you really have to step up your game. Over the years I have scrubbed toilets, cleaned ovens, babysat for pets, helped clients find jobs, and in a c...
Purchases of new U.S. homes unexpectedly increased in March to an eight-month high, indicating housing demand remained strong at the start of the spring buying season, Commerce Department data showed Tuesday. Key Points Single-family home sales increased 5.8 percent to a 621,000 annualized pace (median forecast...
Buying a house can be both an exciting and simultaneously stressful experience. One reason the home buying process tends to be so stressful for many consumers — besides the fact that it’s probably the biggest purchase you’ll ever make — is the rigorous qualification process involved in gett...