Easing Lending Standards, Increased Demand, and More Profit; Lowest Rates in More Than a Year, But Risks Increase

Easing Lending Standards, Increased Demand, and More Profit; Lowest Rates in More Than a Year, But Risks Increase

While still far from buoyant, mortgage lenders were a little more upbeat about their expected profit margins and the demand outlook for both purchase and refinance mortgages when responding to Fannie Mae's first quarter Mortgage Lender Sentiment Survey. The net share of lenders reporting that demand had increased for purchase mortgages over the prior three months fell to a new survey low, however the net responses reflecting more positive expectations for the upcoming three months rose compared to one year ago. The responses were consistent across all loan types. While more lenders continued to report weaker demand for refinancing over the previous three months than reported rising demand, the net share of positive responses increased significantly; rising to the highest level in two years