More Lenders Looking to Ease Credit Standards as Mortgage Demand Cools and Competition Heats Up According to our Economic and Strategic Research Group, lenders report survey-high expectations to ease credit standards as growth in purchase and refinance mortgage demand slows down.
Expectations to ease credit standards climb to new heights.
Purchase mortgage demand drops to the lowest reading in the past two years, year over year. 80
net % of lenders expecting more demand
net % of lenders expecting to ease
15
9
3
0 Q2 2015
Q2 2016
Q2 2017
GSE Eligible
70 60 50 40 30 20
Q2 2015
GSE Eligible
Q2 2016
Non-GSE Eligible
Q2 2017
Government
Lenders continue to expect a lower profit margin over the next three months, but the trend has improved.
Overwhelming majority of lenders say market competition is the main reason for their lower profit margin outlook.
% of lenders
% of lenders 23% 16% 15% 39%
46%
Increase
48%
About the same
46%
38%
Q4 2016
Q1 2017
29%
Decrease
Q2 2017
71%
26%
21%
Market Competition
Market Trend Changes
Staffing Costs
Other factors cited include government regulatory compliance and consumer demand.
