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Homebuilders to Benefit From Looser Lending Standards

construction-two [1]Loosening credit standards, demographics, pent-up demand, and attractive affordability and housing valuations are on track to promote a healthier housing market for the rest of 2015 in the homebuilding and construction sectors, according to an analysis [2]from Fitch Ratings [3] released Wednesday.

"Regulators have eased some lending standards while also proposing changes (such as the FHA reducing private mortgage insurance premiums on its loans) that could provide more access to previously excluded potential buyers," Fitch says.

Recent Credit Loosening Regulatory Actions:

"Generally, we believe growing strength in the economy, employment and demographics should positively influence housing in 2015," Fitch said. "Total housing starts are projected to expand almost 14 percent to 1.11 million as single-family starts advance 12.5 percent and multifamily volume gains 7.3 percent. New home sales should improve about 20 percent while existing home sales should rise about 4 percent."