Lenders Expect Rising Demand for Purchase Mortgages

As reported by MyAMC.com, Fannie Mae conducted their quarterly Mortgage Lender Sentiment Survey® in May 2016. The results show that “lender attitudes toward the housing market have become increasingly optimistic.”

Lenders report that GSE eligible purchase mortgages are increasing, a trend they’d seen in the past quarter. Credit standards will likely not be changing, though lenders have also noticed a “net ease of credit standards, which is a factor for all loans across the board.”

Though this means predicted continued growth in the real estate and lending markets, Doug Duncan, the Senior Vice President and Chief Economist at Fannie Mae encourages borrowers to remain cautious, as the easing of credit standards may not see a steady rise, but a tapering off.  Duncan stated that “the vast majority of lenders, around 90%, reported plans to keep their credit standards about the same.”

MLSS-Q2-graph1

MLSS-Q2-graph2

Read the full article HERE.

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