Once Lending Normalizes - Buyer Demand Will Increase Even More

More applications for mortgages were approved — 56.8 percent in February versus 55 percent in January, a slight improvement.
The refinance share of loan originations fell to 68 percent in February, from 73 percent in January, which is “a good sign since it indicates lenders are getting more serious about going after the purchase market,” Inman News reports.
Still, many in the industry say that banks are being too strict with home loans. Lawrence Yun, chief economist for the National Association of REALTORS®, estimates that if credit conditions returned to “normal,” about 500,000 to 700,000 more home sales would occur this year.
Source: “Encouraging Signs That Mortgage Credit Is Easing,” Inman News (March 26, 2013)