There are many indicators of a recovering housing market.  Buyer demand is strong. Mortgage interest rates continue at historic low levels.  Homes, in many local markets, have been experiencing significant increases in their valuation.  Although the inventory of homes for sale remains low, more and more sellers, encouraged by the economic news, are bringing their homes to market.  One piece of the “housing mix puzzle”, which has not yet adjusted itself to the realities of a recovering market, is the mortgage company underwriting department.  Although interest rates are very low, the lender institution underwriting departments are still overly cautious.  Underwriting criteria remain very stringent.  In essence, the lender “underwriting criteria pendulum” went too far in the opposite direction from the days of very lax underwriting criteria.  In the past, the lending practices were so lax that they led to the market crash.  However, a recent survey of lenders indicates their optimism in the recovery has soared and they may be inclined to be less risk averse in their underwriting requirements.  This is very encouraging news.  Check out the full story here and contact The Zwahlen Team when you decide to buy or sell.