The Federal Reserve is reporting that mortgage lenders are requiring tighter lending standards for home loans. Calculated risk reports on the Fed's statements regarding lending standards for home loans:
Compared with the January survey, the net fractions of banks that tightened lending standards increased significantly for consumer and commercial and industrial (C&I) loans.
Additionally, demand for mortgage financing is falling as well. This makes sense, since many who would normally consider buying a home are hanging back. Whether they are worried about passing muster with the new lending standards, or whether they are worried about the real estate market, fewer people are interested in buying a home.
image credit: sxc.hu
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