Paul Davidson, USA TODAY 6:22 p.m. EDT August 4, 2014
Banks also loosened lending criteria for a variety of other consumer and business loans as the economy improved and demand picked up.
“The July survey results showed a continued easing of lending standards and terms for many types of loan categories, and a broad-based pickup in loan demand,” the Fed said in its senior loan officer survey.
The developments could foreshadow a turnaround in the housing market, which has slowed this year amid last year’s increases in mortgage rates and higher home prices.
More favorable credit conditions have been cited as a key driver of stronger economic growth recently. Last week, the government said the economy grew at a better-than-expected annual rate of 4% in the second quarter.
Credit standards for many types of loans, including mortgages, are still more stringent than they were before the 2008 financial crisis, but they’ve eased in recent months, the survey shows.