RE/MAX Town & Country
RE/MAX
  • Search For Properties
    • Start Search Here
    • Featured Properties
    • Farms and Ranches for Sale
    • Homes with Acreage for Sale
  • Explore Places to Live
  • Advice & Tools
    • Get a Loan
    • Real Estate News
    • Run The Numbers
    • The Homeowner’s Advice Blog
    • What’s My Home Worth?
    • Loan Calculator
    • My Homefinder
  • About Us
    • Our Profile
    • Our Agents
    • Testimonials and Reviews
    • Career in Real Estate?
    • Why Use RE/MAX
    • Contact Us
homefinder toggle
Create a free HomeFinder Account   Login   Register
Welcome!   HomeFinder   Log Out
Home > Uncategorized > Real Estate News

Real Estate News

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.


Have a Question?

Fields marked with an * are required

Recent Blog Posts

Make Your Move Easier

What Home Buyers Want During a Pandemic

Sprucing Up for Autumn Sales

Selling Your Home in Uncertain Times

Team with an Agent When House Hunting Online

Featured Properties

REMAX Town and Country balloon

Contact Info

RE/MAX Town & Country
301 S Watters
Allen, TX 75013

Phone Numbers
Office: 972-390-0000
Direct: 888-838-4663
Contact Us

Connect With Us

  • Facebook
  • Twitter
  • Contact

Find Us On Facebook

Facebook Pagelike Widget
Each RE/MAX® Office is Independently Owned and Operated. Equal Housing Opportunity. It is illegal to discriminate against any person because of race, color, religion, gender, handicap, familial status, or national origin.
engageRE is a trademark of real.leads Inc. All other trademarks are the property of their respective owners.
Site Powered by engageRE | © 2021 real.leads, inc. | Select images used with permission - © Can Stock Photo | WordPress Access | Agent Portal