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Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

01/24/2012BY: KRISTA FRANKS BROCK 

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

 

 
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SPRING IS IN THE AIR!

Early Spring Garden Tasks

 

Early spring is the time for lime.
Soils with a pH below 6.2 will benefit from the addition of lime. Dolomite is the finest grind, and is recommended. With ground limestone it will take twice as long for plants to derive any benefit from it. Ideally, lime should be added several weeks before planting. Hydrate lime, or “quick lime”, is not recommended, as it can change the soil pH so rapidly that plants may be damaged. Cover newly limed beds with plastic during heavy spring rains to prevent runoff. Soil pH can be determined by using a soil pH test kit.

Prepare your lawn for spring.
Rake the lawn to remove dead growth and winter debris. This helps bring light and air to the soil level, encouraging the grass to grow. Re-seed bare patches of lawn. Rake bare spots firmly with a metal rake before seeding. Sprinkle grass seed into a bucket of soil and spread evenly over the bare spot. Keep well-watered until seeds germinate and the new grass establishes. Pre-emergent herbices such as corn gluten may be applied now.

Thin dead foliage of ornamental grasses and ferns. pull vegetable plant skeletons.
Once new growth begins. it becomes difficult to thin ornamentals without damaging the plant. New growth will quickly replace the culled foliage. And if you didn’t get around to this last fall, pull the old tomato, squash and other plant skeletons to clear the bed for planting. Plant skeletons can be added to the compost if you are sure they do not harbor any plant disease.

Cherry Blossom Festival!

The Pinkest Party on Earth! March 16-25th, 2012 in Macon, GA!  Go to the Cherry Blossom Website address at http://www.cherryblossom.com/events for more information. 

I’ve personally been to several events at the Cherry Blossom Festival and it proves to be a great time! Check it out this year!

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