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 toFreddie Mac). However, a less covered aspect of the mortgage market is that requirements to get a mortgage have eased while rates have risen.
TheMortgage Bankers Association(MBA) quantifies the availability of mortgage credit each month with theirMortgage Credit Availability Index(MCAI). According to theMBA, theMCAIis:
“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 theMCAIover the last several months as rates have increased.
Have requirements for attaining a mortgage actually eased?
Yes. Here are two examples:
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:
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 1stquarter of 2017:
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.
Author:Derrick Houston Phone: 214-385-1221 Dated: April 13th 2017 Views: 66 About Derrick: Derrick has been in real estate for seven years. Before embarking on a career in real estate, Derric...
View our latest blog posts in your RSS reader. Click here to access.
Rogers Healy and Associates Real Estate is a DFW based residential and commercial real estate company that was founded in 2007 by Rogers Healy. RHAdfw is passionate about developing long lasting relationships with clients while representing them to buy, sell or lease any home in DFW.