Lending Remains Too Tight for Home Buyers, Report Says
The housing market has made strides toward recovery but will be constrained until lenders loosen up a bit, according to the Federal Open Market Committee meeting minutes.
The committee members noted growing optimism about home prices, sales, and low mortgage rates. But they say that the market is still below ideal levels.
“These participants also noted that underwriting standards remained quite tight, particularly for borrowers with lower credit quality,” according to the minutes.
The committee also noted that a spur of refinancing activity — due to low interest rates — is creating backlogs as lenders try to keep pace.