The Mortgage Lending Factor: This is Not 2008 All Over Again

November 19th, 2019

405 total views, 19 views today

0

The Mortgage Lending Factor

This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM

Mortgage Lending Factor

The Mortgage Lending Factor: Some are afraid the real estate market may be looking a lot like it did prior to the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money. Recent articles about the availability of low-down payment loans and down payment assistance programs are causing concern that we’re returning to the bad habits of a decade ago. Let’s alleviate the fears about the current mortgage market.

The Mortgage Bankers’ Association releases an index several times a year titled: The Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is…a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available the mortgage credit.

This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM

Here is a graph of the MCAI dating back to 2004, when the data first became available:As we can see, the index stood at about 400 in 2004. Mortgage credit became more available as the housing market heated up, and then the index passed 850 in 2006. When the real estate market crashed, so did the MCAI (to below 100), as mortgage money became almost impossible to secure.

Thankfully, lending standards have eased since. The index, however, is still below 200, which is half of what it was before things got out of control.

Bottom Line

It is easier to get a mortgage today than it was immediately after the market crash, but it is still difficult. The difference in 2006? At that time, it was difficult not to get a mortgage.

We have three offices to serve you better!

Let’s get you pre-approved and on the road to home ownership today! Contact us!

Silverton Office 503-874-4666
Woodburn Branch Office 503-446-5411
Keizer Branch Office 971-339-5244

Contact one of our Agents today!

Simply The Best!
Oregon Licensed Real Estate Brokers

406 total views, 20 views today

Leave a Reply