US demand up

WASHINGTON, May 4 (Reuters) - Demand for prime mortgages rose in the first quarter for the first time since early 2007, even as banks tightened standards for home loans, the Federal Reserve said in a survey of loan officers released on Monday.
About 35 percent of U.S. banks saw stronger demand for top quality home loans in the quarter, a "substantial" change from the 10 percent that reported weaker demand in the January survey, the Fed said in its April Senior Loan Officers Survey on bank lending practices.
Only two banks said they were making subprime loans -- loans to borrowers with blemished credit that played a major part in the credit crisis that has caused the worst financial meltdown since the Great Depression.
In a sign some of the strains from the worst financial crisis since the Great Depression may be fading, U.S. banks eased standards for business lending. Terms had tightened on loans to large and middle-market firms in each of the eight previous quarters and to small firms for 10 straight quarters.
The Fed said banks eased standards for consumer loans other than credit cards as well.
While the proportion of banks reporting such tightening is large, the April survey marked the first time since January 2008 that the share fell below 50 percent, the Fed said.
The share of respondents who had tightened standards for home equity lines of credit was down, and demand for home equity lines of credit was lower, the Fed said.
Domestic banks left their standards for credit card loans unchanged, the Fed said.
Demand for other types of loans fell in the quarter.
Banks said credit quality is likely to deteriorate for the rest of the year if consensus forecasts for the economy prove on target.
Banks providing trade credit said they had tightened standards over the previous six months.
Banks that tightened standards or terms for international trade finance cited the uncertain economic outlook in the United States and abroad, higher country risk, and worsening industry-specific problems as reasons.
The Fed polled 53 domestic banks and 23 branches of foreign parents for the survey. (Reporting by Mark Felsenthal, Editing by Chizu Nomiyama)

Bye For NowIMS Foreign Exchange
Foreign Exchange TradingForex Trading Reports - Click for a free trial
Buying Euros? Buy Euros at the best euro Rates!
Buying Dollars? Buy US Dollars at the Best Dollar Rates!
Buying Australian Dollars? Buy Australian Dollars at the Best Australian Dollar Rates!
Contact IMS Foreign Exchange
+ 44 207 183 2790

Spanish slowdown eases

MADRID, May 12 (Reuters) - Spanish house sales fell at the slowest pace in 11 months during March, the National Statistics Institute reported on Tuesday, marking the latest data to suggest Spain's severe recession may be easing.

Home sales fell 24.3 percent to 34,895 in March in what was the 13th straight month of decline, but well below rates of 37.5 percent in February and 38.6 percent in January, INE reported.

The March result was the slowest rate of decline since April 2008 and followed Bank of Spain data showing banks lent 7 billion euros in March for mortgages, the most since July 2008.

Economists expected the sales trend to continue as real estate firms and banks repossess homes due to soaring debt defaults and put them on the market at ever lower prices.

"It's not that things are improving, there's just less deterioration," said economist Carlos Maravall at the AFI consultancy. "We've had a very sharp fall in terms of house sale numbers and what remains to be seen is a price fall."

March housing results were flattered by the statistical impact of a sharp, 39 percent fall in March 2008 sales and the fact Easter fell in March last year.

But they mirrored data showing a slowdown in the rate of decline in April service and manufacturing sector activity, as measured by the Markit Economics Purchasing Managers' Index.

Spain's Socialist government last week said it saw green shoots of economic recovery after Spanish consumer confidence hit a year high in April as new jobless claims rose at their slowest pace in nine months.

The International Monetary Fund expects Spanish house prices to fall 30 percent from peak to trough and estimates Spain is around half way through that process. (Reporting by Andrew Hay; Editing by Chris Pizzey)

Bye For NowIMS Foreign Exchange
Foreign Exchange Trading
Forex Trading Reports - Click for a free trial
Buying Euros? Buy Euros at the best euro Rates!
Buying Dollars? Buy US Dollars at the Best Dollar Rates!
Buying Australian Dollars? Buy Australian Dollars at the Best Australian Dollar Rates!
Contact IMS Foreign Exchange
+ 44 207 183 2790