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