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. However, if we look at the availability of mortgages since 2004, you can see that mortgage availability has quite a way to go before we would be in trouble again.
Mortgage Credit Availability Today Compared to 2006
The graph below shows the Mortgage Credit Availability Index going back to 2004
As this visual easily illustrates, today’s index is nowhere near the levels it shot up to in 2006.
Mortgage credit is definitely easing. However, we are not coming close to the lax standards that caused the housing crisis of last decade.
Nancy Puder is a real estate broker with Keller Williams Realty Central Coast. Call or Text Nancy (805)710-2415 with your real estate questions anytime. She always enjoys hearing from you! To access other articles written by Nancy Puder, go to www.nancypuderassociates.com. Readers can also email with questions or to discuss their real estate needs.
