DSNews tells MHProNews.com the loosening of credit this year will lead to the end of the housing crisis, according to analytics firm Capital Economics. Noting the consistency of credit scores and credit requirements over the past year, banks now lend up to 3.5 times borrower earnings, up from 3.2 times during the housing crisis. Banks have moved from a loan-to-value ratio (LTV) of 74 percent in mid-2010 to 82 percent today. But Capital Economics also cautions, “Any improvement in credit conditions won’t be significant enough to generate actual house price gains,” noting the European debt crisis could still affect credit here.

(Photo credit: TotalMortgage)