ESTATE


Prime mortgage demand is up
2009/05/05, 6:37 pm
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Demand for prime mortgages was up substantially in the first quarter of this year for the first time since early 2007, according to a Federal Reserve survey of loan officers released Monday.

The rise in demand comes at a time when rates are low, but about 50 percent of banks say they are tightening lending standards.

More than 65 percent of the banks tightened standards on the kinds of loans available to borrowers with blemished credit. Only two of the 53 domestic banks and 23 branches of foreign parent banks surveyed reported that they were offering adjustable-rate loans.

Banks also reported that they were tightening standards for commercial lending, credit cards, and other consumer loans.

Source: The Associated Press, Jeannine Aversa and Reuters News, Mark Felsenthal (05/04/2009)

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