We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has
Mortgage Standards Easing TOO MUCH NO
There is no doubt that getting a mortgage is easier today than it was right after the housing crash a decade ago. However, the easing of credit availability has led to some questioning of whether or not we are headed for another housing crisis.
Let’s put everything into the proper perspective.
Mortgage Credit Availability Over the Last Three Years
Getting a home mortgage has definitely gotten easier over the last three years as evidenced by the Mortgage Credit Availability Index,issued by the Mortgage Bankers Association, in the following graph (the higher the index, the easier it is to get a mortgage):
However, if we look further back at the index we see quite a different story.
Mortgage Credit Availability Today Compared to 2006
The graph below shows the index going back to 2004, and the first graph we showed you above is represented by the small, orange, triangular section all the way in the lower-right corner.
As this visual easily illustrates, today’s index is nowhere near the levels it shot up to in 2006.
Mortgage credit is definitely easing. However, we are not coming close to the lax standards that caused the housing crisis of last decade.
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So, you’ve been searching for that perfect house to call a ‘home,’ and you finally found it! The price is right, and in such a competitive market, you want to make sure that you make a good