While the housing sector remains "depressed," some Federal Reserve officials have spotted areas of improvement.
According to minutes of the January 24-25 Federal Open Market Committee meeting, one unidentified member of the central bank noted that lending standards may be easing.
This member "cited reports from business contacts indicating that credit standards in mortgage lending were becoming somewhat less stringent," the FOMC minutes say.
Another Fed official is quoted as saying recent changes to the HARP program are “showing some success." The government's Home Affordable Refinance Program is designed to streamline the refinancing of high LTV mortgages.
All Federal Reserve governors and a rotating number of Federal Reserve Bank presidents are members of the monetary policy committee.
Meanwhile, Fed staffers briefed FOMC members about their reading of the housing and mortgage markets. Despite historically low mortgage rates, refinancings, "continue to be subdued amid tight underwriting standards and low levels of home equity” staff members told their bosses.
Staffers also noted that "sales of new and existing homes firmed somewhat in recent months, but home prices continued to trend lower.”
