Lenders expect rising demand for purchase mortgages, while credit standards stay stable.

Fannie Mae’s Mortgage Lender Sentiment Survey® from the second quarter of 2016, reveals that as we head into Q3, lender attitudes toward the housing market have become increasingly optimistic.

Surveys that were conducted in May show that lenders are reporting an increase in GSE eligible purchase mortgages and according to various sources, this has occurred over the past three months. In part because of this, as is congruent with traditional seasonal variation, growth bounced back to 70 percent on net, compared with 20 percent in Quarter 1 2016 and 71 percent this time last year (Q2 2015).