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Mortgage Credit Availability Rises: What to Know

Mortgage credit availability is on the rise. This is good news for buyers, especially first-time homebuyers, who may be struggling to find a house they can afford. Mortgage rates are still at historic lows, which means that now is a great time to buy.

According to Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “December’s growth was driven by more ARM and lower credit score loan programs, which was likely due to a combination of the rising rate environment and affordability challenges. Lenders expanded offerings to qualified borrowers who were the most impacted by these market conditions. Additionally, there was an increase in government streamline refinance programs to aid borrowers still looking to refinance before rates rise even more.”

Added Kan, “The overall supply of mortgage credit only grew around 3 percent compared to the same month a year ago, with a 34 percent increase in jumbo loan credit availability contributing to most of that growth. Government credit supply, as well as conforming credit, saw tightening last year.”

Traditionally, low mortgage rates have led to an increase in home sales. However, the number of homes on the market has also been declining. Houses listed for sale are selling quickly and often require multiple bids before they’re finally sold. If you want to make sure you’re getting the best deal possible, it’s important to know all your options and what you’ll need once you start looking for houses.

Finding Homes in a Seller’s Market

The number of homes being sold has been declining in recent years. It’s important to know where you can find homes that are for sale. One place to look is the Multiple Listing Service (MLS) database. This site will have listings from multiple brokers who are selling houses in your area. If you want to get a better idea of what homes are for sale, you should also start looking at listings on social media sites like Facebook.

One reason mortgage credit availability is on the rise is because mortgage rates are still at historic lows. If you haven’t already taken out a loan, now might be a good time to do so if you want to buy a home, especially if you live in an area where housing prices are high – this way, you’ll be able to afford more house than usual.

You may also want to take out a 30-year fixed rate mortgage instead of a 15-year one because it will save money in the long run. The disadvantages of taking out this type of loan include higher monthly payments and more restricted borrowing power – meaning that once interest rates go up or your income decreases, it will be harder for you to make your monthly payments.

In order to make sure your house purchase goes as smoothly as possible, make sure you research all your options beforehand – including how much house you can afford and what kind of loan makes the most sense for your needs and financial situation.

What does this mean for buyers?

The rise in mortgage credit availability is important for buyers. As more people start to buy houses, the competition will be less fierce and buyers will have a better chance of getting the house they like. This means that even if you aren’t sure which home you want, it’s still worth starting your search now to beat the rush and find the perfect house for you.

How to find the best deal in today’s market

The first step to finding the best deal is knowing what you want. What is your ideal home? How many bedrooms do you need? Do you want a house or a condo? Knowing what you’re looking for will help narrow down your options and make it easier to find the perfect place.

Some homes may be listed as “short sales,” which means that the seller is asking less than the original mortgage amount. A short sale may be worth considering if you can’t afford as much as is owed on the property and if it is in good condition.

Another option for those looking for a bargain is foreclosures. These properties are selling at significant discounts because they have been repossessed by lenders and banks after foreclosure proceedings. It’s important to know that foreclosures often come with additional costs, including maintenance costs, taxes, title fees, and more. If this doesn’t sound like an option for you, consider renting instead of buying until prices rise once again or until interest rates decrease further.

Your Next Steps

The recent rise in mortgage credit availability is good news for buyers looking to purchase a home. Whether you’re a first-time home buyer, looking to trade up or need assistance with down payment assistance, there are more options available today than ever before.

Contact an experienced Los Angeles mortgage broker to take steps today to learn how much home you can afford. Our expert can help you find the perfect home for your needs and will work hard to get you financing that won’t break the bank.

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