There’s good news from the Wall Street Journal (“Mortgage Credit Most Available in at Least Three Years, Gauge Says,” April 9, 2014) about the ongoing affordability of mortgages. According to their datat, access to a mortgage is at its highest level in at least three years. Not only that, but in general, credit standards are expected to loosen even more than they already have in 2014. The WSJ’s data comes from a new study from the Mortgage Bankers Association.
Mortgages have become easier to get in the past few years as the economy and housing market has started to recover. However, unlike in 2005, it is still at a healthy level where people still need to qualify with appropriate income and debt-to-income ratios. In the beginning of 2014, the new rules for lenders and borrowers that went into effect were thought to perhaps make credit more difficult to get for the average home buyer. But that assumption now seems to have been incorrect.
If you have been holding back applying for a mortgage because of the new mortgage rules, you don’t need to worry. Loans have not become more difficult to get because of the new lending regulations. If you’re purchasing a property in the South Bay, you won’t face any restrictions simply because of new rules.