Mortgage Standards Easing TOO MUCH? NO!!

    Mortgage Standards Easing TOO MUCH? NO!! | Keeping Current Matters

    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):

    Mortgage Standards Easing TOO MUCH? NO!! | Keeping Current Matters

    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.

    Mortgage Standards Easing TOO MUCH? NO!! | Keeping Current Matters

    As this visual easily illustrates, today’s index is nowhere near the levels it shot up to in 2006.

    Bottom Line

    Mortgage credit is definitely easing. However, we are not coming close to the lax standards that caused the housing crisis of last decade.

     

     

    Source:  Keeping Current Matters

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    Steve Baker

    Steve comes to the world of real estate with nearly 30 years of Marketing and Graphic Design experience. These two very important skills make him ideal for this profession. In 2017 he achieved his highest accolade to date becoming a global, award-winning real estate graphic design/marketing recipient. Mr. Baker is not only a REALTOR but the Director of Marketing for Rinehart Realty. His education and work experience also include a Bachelor degree in Education and degrees in Radiologic Technology and Medical Ultrasonography. He was a pioneer in the field of Radiology PACS development and Radiology Voice Recognition adoption and implementation in southwest Virginia. His previous positions as Director of Radiology and PACS Administrator lead to enormous development in resources and project management necessary to succeed in the field of real estate. Steve is a writer and developer for a variety of blogs and real estate publications. He recently completed his first book of quotations and is currently working on a Real Estate Marketing book. He is a strong supporter of the United Way, having won a past Campaign Coordinator of the Year award. He is also a strong advocate for breast cancer research and education. Mr. Baker has a history of work experience developed on the foundation of a strong work ethic, the pursuit of excellence, quality, honesty and integrity.

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