In the United States it is said by the Capital Economics that they expect the housing crisis to end this year and one of the reasons why is due to loosening credit.
In order to attain a mortgage loan, the average credit is needed to be a minimum of 700, although prior to the crisis, higher scores were previously required. Banks are currently lending amounts up to 3.5 times borrowers earnings, which is up from a low 3.2 times borrower earnings. Banks are also loosening the loan to value ratios, which Capital Economics denotes as the clearest sign yet of an improvement in mortgage credit conditions. Banks were previously lending at 74 percent LTV and now they are at 82 percent. While credit conditions may have been loosened, some home buyers are still having problems with their credit requirements. Back in November, 8 percent of deals were cancelled due to the fact that the buyer was unable to qualify for a loan.