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In Housing Market Upswing, Banks Win First and Biggest

"Over the past three years banks haven't drastically changed their mortgage-lending standards," Turner says. "We think that's understandable; after all, indiscriminate lending was part of what caused the subprime mortgage collapse that sunk the banks and the economy in 2008."

"But the banks won't be able to ignore, and aren't ignoring, rising demand for mortgages for long. In a recent Federal Reserve survey of senior loan officers, the number of banks reporting increasing mortgage-loan demand was characterized as 'significant.'"

In addition, since 86% of all U.S. mortgages have an interest rate of 4.5% or more, the refinancing market should also step up significantly, as the average 30-year fixed mortgage rate stands at 3.53% this week, according to the BankingMyWay Weekly Mortgage Rate Tracker .

So it turns out that what is goods news for banks, in this case, should mean good news for consumers too.