From CNBC:

No Money? No Worries. Home Lenders Ease Rules

As housing heads into the critical spring market, credit is finally beginning to thaw. Lenders are increasingly approving low down payment loans, and government sponsored mortgage giant Fannie Mae is buying more of them.

It is a noticeable shift from the last four years, when 20 percent down on a home purchase loan was the only game in the neighborhood.

PS.  I appreciate the nice comments from people on my Keynesian-bashing post, but I regret my remarks claiming that most economists don’t understand the monetary offset problem.  I can’t really know that, and as Matt Rognlie pointed out my analysis wasn’t technically correct either.  Sometimes I let my frustration get the upper hand.

But I still think my counterfactual is plausible.