WASHINGTON – Aug. 5, 2014 – The home mortgage market improved last quarter as demand increased and many banks eased their lending standards for the most creditworthy borrowers, the Federal Reserve said Monday.Banks also loosened lending criteria for a variety of other consumer and business loans as the economy improved and demand picked up.The developments could foreshadow a turnaround in housing, which slowed this year amid last year's increases in mortgage rates and higher home prices. More favorable credit conditions have been cited as a driver of stronger economic growth recently. Last week, the government said the economy grew at a better-than-expected annual rate of 4 percent in the second quarter.Credit standards for many loans, including mortgages, are more stringent than before the 2008 crisis, but they've eased in recent months, the Fed's senior loan officer survey shows.Mortgage demand started to flag as borrowing costs edged up after Federal Reserve officials signaled in May 2013 that the central bank would soon wind down bond purchases holding down long-term interest rates.Rates for 30-year fixed mortgages rose nearly a percentage point to 4.46 percent by the end of last year. But rates have drifted down (4.12 percent last week), in part because the Fed indicated it's in no rush to raise short-term interest rates.Half the banks surveyed by the Fed in July said demand for prime mortgages was stronger the past three months. Lenders had reported weakening demand the previous three quarters.Even more encouraging, nearly a quarter of the banks said they eased credit standards for prime mortgages, the most since the 2007 housing crash. Only about 6 percent toughened their criteria.Several large banks also loosened standards, boosted credit limits and reduced the minimum credit score for credit card loans. A surge in borrowing also boosted business loans, with more than 30 percent of banks citing stronger demand from businesses; about 5 percent reported weaker demand.About 11 percent of banks surveyed eased their standards for loans to midsize and large companies, and 8 percent did so for small businesses, while none tightened.Copyright 2014 USA TODAY, Paul Davidson. Seth Perlman, AP
Author:Kathy Toonder Phone: 941-544-7270 Dated: August 5th 2014 Views: 1,027 About Kathy: I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s...
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I enjoy walking the warm sandy beaches, swimming and watching the magnificent sunsets on Florida’s Gulf Coast. Thirty years ago I came from Michigan to the Sarasota area to enjoy the beaches of the Sunshine State. The “Beach Communities” Longboat Key, Lido Key, Siesta Key and Casey Key are what draw everyone to make Sarasota their home!
Sarasota the “Cultural Capital” of Florida attracts homeowners that want more than just a beach experience. Sarasota and Manatee communities with the growth of new housing maintain their elegant but laid back style. It is a great place to make it your home to be able to enjoy lush natural environment and the amenities of a modern city.
I became a home owne r in Lakewood Ranch an award winning 17,500 acre site that provides a beautiful master planned, maintained and golf community. Get the picture: blue waters, white sand, plenty of sun, blue skies, fabulous food, casual outdoor dining, amazing fishing, play golf, boat races, music and art festivals….
My focus is to best understand the goals and visions of my clients, ensuring all decisions are made with a wealth of information and the necessary tools for a successful, rewarding experience.
I have found my “Slice of Heaven” I look forward to you finding yours!
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"Kathy was everything we wanted and needed in an agent as 1st time home buyers. She went above and beyond to ensure that we had everything explained to us, because we did have a lot of questions. An amazing agent and better person! -Megan & Justin"