Lenders Not Optimistic about Mortgage Demand

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The lenders who expect the demand for new purchase mortgages to go up during the course of the next three months decreased between 26% and 33% depending on the mortgage type. This was revealed in the Mortgage Lender Sentiment Survey for the third quarter of 2014 carried out by Fannie Mae.

The largest decline in the expectations for growing demand (33%) was for GSE-eligible mortgage loans. The lenders who expected the demand for these loans to increase fell down to 21% during the third quarter from 54% during the second quarter of the year. The share of respondents who expected an increase in the demand for non-GSE loans was 27% during the third quarter. It declined from 53% during the previous quarter. Only 16% of participating lenders expected an increase in the demand for government-backed loans. Their share fell from 42% during the second quarter of 2014.

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Even though the large lenders participating in the survey expected the credit standards to loosen up during the fourth quarter of the year, they were more pessimistic about the chances of borrowers for obtaining a mortgage loan. Only 15% of the respondents in the Mortgage Lender Sentiment Survey thought that it was easy for consumers to obtain a mortgage in the third quarter compared to 19% in the second quarter of 2014. The data compiled by the National Housing Survey for the third quarter reveals that some 48% of consumers thought it was easy to obtain a home loan.

The majority of lenders (48%) expected home prices to rise during the final quarter of the year. Only 2% expected a decline. Those lenders who expected home prices to go up projected the increase to be 1.9% on average.
The Mortgage Lender Sentiment Survey is carried out among 214 executive officers who represent 196 lenders in the United States.



Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info

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