Housing Crisis to End in 2012 as Banks Loosen Credit Standards
February 16, 2012 by Doors Of Your Life · Leave a Comment
Capital Economics expects the housing crisis to end this year, according to a report released in January. One of the reasons: loosening credit. 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.
Read the complete article on DSNews.com here: Housing Crisis to End in 2012 as Banks Loosen Credit Standards
