The Q3 release of the Senior Loan Officer Opinion Survey indicated broad-based gains in demand and relaxed lending standards across most loan categories. This could bode well for economic growth moving forward.
Prime Time for the Mortgage Market
Recent data from the Senior Loan Officer Opinion Survey (SLOOS) for Q3 painted a picture of broad-based continued improvements in the lending market across most categories of loans.
Following three quarters of declines in demand and two quarters of tighter lending standards, the mortgage market finally caught a break in Q3-2014. The major gains were in prime mortgages, as 45.1 percent of banks reported stronger demand and 18.3 percent of banks relaxed lending standards. Nontraditional mortgages also saw an improvement, but to a lesser extent than prime mortgages, with 14.3 percent reporting an increase in demand and only 5.6 percent of banks relaxing standards. The housing market has seen sluggish growth in the first half of the year following harsh winter weather and negative economic growth in the first quarter. This was witnessed recently by lower-than-expected data for housing starts, new home sales and pending home sales. Easier lending standards and increased demand for mortgages could give the housing market a welcome pickup for the rest of this year.
General Risk Warning for stocks, cryptocurrencies, ETP, FX & CFD Trading. Investment assets are leveraged products. Trading related to foreign exchange, commodities, financial indices, stocks, ETP, cryptocurrencies, and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, variable investments may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Witbrew LLC and associates have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to investment trading or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0750 following Monday's indecisive action
EUR/USD continues to fluctuate in a tight channel at around 1.0750 after posting small gains on Monday. Disappointing Factory Orders data from Germany limits the Euro's gains as investors keep a close eye on comments from central bankers.
GBP/USD retreats below 1.2550 as USD recovers
GBP/USD stays under modest bearish pressure and trades below 1.2550 in the European session on Tuesday. The cautious market stance helps the USD hold its ground and doesn't allow the pair to regain its traction. The Bank of England will announce policy decisions on Thursday.
Gold price turns red below $2,320 amid renewed US dollar demand
Gold trades in negative territory below $2,320 as the souring mood allows the USD to find demand on Tuesday. Nevertheless, the benchmark 10-year US Treasury bond yield stays below 4.5% and helps XAU/USD limit its losses.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is Securities and Exchange Commission (SEC) filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.