Kris and Kim's Blog

Great Stuff on Interesting Topics
Home Mortgages: Rates Are Up And Requirements Easing

Home Mortgages: Rates Are Up And Requirements Easing. The media has extensively covered the rise in mortgage interest rates since last fall (from 3.42% last September to the current 4.1% according to Freddie Mac). However, a less covered aspect of the mortgage market is that requirements to get a mortgage have eased while rates have risen.

The Mortgage Bankers Association (MBA) quantifies the availability of mortgage credit each month with their Mortgage Credit Availability Index (MCAI). According to the MBA, the MCAI is:

“A summary measure which indicates the availability of mortgage credit at a point in time.”

The higher the index, the easier it is to get a mortgage. Here is a chart showing the MCAI over the last several months as rates have increased.

Home Mortgages: Rates Are Up And Requirements Easing

Home Mortgages: Rates Are Up And Requirements Easing

Have requirements for attaining a mortgage actually eased?

Yes. Here are two examples:

  1. FICO® Score – the credit score which helps determine a buyer’s eligibility. The score required to attain a mortgage has been falling over the last five months:
Home Mortgages: Rates Are Up And Requirements Easing

Home Mortgages: Rates Are Up And Requirements Easing

  1. Down Payment Requirement – the percentage of the purchase price necessary to place as a down payment on a home. To make this point, let’s look at the percentage of first-time buyers who have put less than 5% down over the last several years as compared to the 1st quarter of 2017:
Home Mortgages: Rates Are Up And Requirements Easing

Home Mortgages: Rates Are Up And Requirements Easing

Bottom Line

Whether you are a current homeowner looking to move to a home that will better serve your family’s current needs, or a first-time buyer looking for a starter home, it is easier to get a mortgage today than it has been at any other time in the last ten years.

 

Kris and Kim Darney – REALTORS® – Grandparents – 714.657.6634
Summary
Home Mortgages: Rates Are Up And Requirements Easing
Article Name
Home Mortgages: Rates Are Up And Requirements Easing
Description
Home Mortgages: Rates Are Up And Requirements Easing. The media has extensively covered the rise in mortgage interest rates since last fall
Author
Who
Kris and Kim Darney Your REALTORS® For Life
Us
Neighborhood Updates In Your Email!

Neighborhood Updates In Your Email!

Join our mailing list to receive the latest news and updates from K&K.

You have Successfully Subscribed!

Pin It on Pinterest

Shares
Share This
%d bloggers like this: