The analytics firm known as Capital Economics recently reported
their inkling that 2012 will be the year that the housing crisis
will officially something of the past. The loosening credit
standards realized today is much of the reason for this hopeful
turnaround. For mortgage loans, the typical credit score needed is
roughly 700 which is above the typical number for past years. The
most recent fourth quarter found that the credit score needed was
being held at the same levels with the first three quarters.
During the recent economic troubles, the banks were lending 3.2
times the buyers earnings. Today individuals are seeing loans
upwards of 3.5 times their earnings. With the loosening of the
loan-to-value (LTV) ratios, banks currently are lending at 82% LTV
where a year ago it was 74% LTV. This is a clear indication that
the state of mortgage credits is dramatically improving. There are
still threats to the future of credit availability such as the
euro-zone, and that any loosening of credit standards will not be
sufficient enough to see increases in home values, however it still
is nonetheless helping.
More Information: DSNNews.com