According to a Fannie Mae survey, more lenders are reporting easing credit standards and expect that trend to continue, reports Diana Olick of CNBC.
Of the 213 senior executives who completed the survey from Nov. 4 to 13, representing 194 lending institutions, 16% said they expect government-backed loan standards to ease. In comparison, 2% are expecting standards to tighten.
"These current practices and expectations toward easing among lenders compares to a historically relatively tight mortgage credit standard base," said Doug Duncan, senior vice president and chief economist of Fannie Mae.
Also, since there are still very few starter homes on the market for first-time home buyers, and home price appreciation is lapping household income growth, Duncan said, “Lenders' thoughtful easing of credit standards should help mitigate some of this affordability decline.”