Home Mortgages Rates Up But Requirements Easing

Dated: 04/13/2017

Views: 124

Home Mortgages: Rates Up, 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 Up, Requirements Easing | MyKCM

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 Up, Requirements Easing | MyKCM

  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 Up, Requirements Easing | MyKCM

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.

Blog author image

Larry Gilman

I've been involved in the Real Estate business since 1994 and have helped over 1,200 families buy or sell a home, some I've done two and three times. I specialize in creative financing, home marketing....

Want to Advertise on this Site?

Latest Blog Posts

4 Reasons Spring Is A Great Time To Buy A Home

 4 Reasons Spring is a Great Time to Buy a Home!Here are four great reasons to consider buying a home today instead of waiting.Prices Will Continue to RiseCoreLogic’s latest Home

Read More

A New Housing Bubble Forming Not Before 2014

 A New Housing Bubble Forming…Not Before 2024!A recent report by CoreLogic revealed that U.S. home values appreciated by more than 37% over the last five years. Some are

Read More

Housing Market Expected To Spring Forward This Year

  Housing Market Expected To “Spring Forward” This Year Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” 

Read More

2 Ways To Get The Most Money From The Sale Of Your Home

 2 Ways to Get the Most Money from The Sale of Your HomeEvery homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you

Read More