According to the latest Fannie Mae quarterly Mortgage Lender Sentiment Survey which asks mortgage professionals to forecast their predictions for the coming months, predictions are that credit standards will continue to soften, which is good news for prospective buyers looking to buy a home for sale or condo for sale in the near future.
Fannie Mae’s senior vice president and chief economist, Doug Duncan believes more credit available should assist buyers who have been affected by negative affordability conditions. Mr. Duncan said, “Several factors point to constrained housing affordability in 2016, particularly for first-time home buyers, including slow single-family supply response and limited inventory of starter homes on the market, strong inflation-adjusted house price appreciation outpacing household income growth, and an upward bias in mortgage rates. However, on net, lenders told us in our fourth-quarter Mortgage Lender Sentiment Survey that they have eased and expect to continue to ease credit standards, which was a consistent trend throughout 2015.” He continued, “Thoughtful easing will help mitigate some of the affordability decline moving into 2016.”
In addition to the survey results, the total number of respondents forecasting an ease in credit standards reached an all time high.
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