|A recent Fed survey showed that while banks were more willing to lend in the third quarter, demand for purchase money mortgages weakened.
The Federal Reserve Board’s October 2004 Senior Loan Officer Opinion Survey on Bank Lending Practices reportedly includes data gathered from responses of 57 domestic banks and 20 foreign institutions on changes over the previous three months in the supply of, and demand for, bank loans to households, the Federal Reserve Board reported.
The responses showed banks’ standards and terms on home loans were little changed, on net, at domestic banks throughout the third quarter, according to the federal policy group.
While banks’ willingness to make consumer installment loans did rise modestly, demand for residential mortgages and consumer loans declined, the Fed said.
About 25% of banks reportedly said there was weaker demand for purchase money mortgages — a significant increase from 8% in July.
The survey reportedly showed that nearly one-third of domestic banks said consumer loan demand weakened from July, compared to 12% in the previous survey, which covered the second quarter’s activity.
So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...