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The MReport Webcast: Wednesday 8/6/2014

Credit availability opened up a little bit more in July as lenders added more jumbo loan offerings and loosened criteria for certain government-backed loans. The Mortgage Bankers Association reported a half a percent increase in its Mortgage Credit Availability Index for the month, putting the index at 116.4.

According to the group, the main force behind the increase was a rise in the number of jumbo adjustable-rate mortgage programs, with many investors adding to their adjustable-rate offerings. Also contributing to the pickup was an increase in availability of high-balance FHA and VA loan programs. The MBA also reported slight loosening in lender criteria for those programs with respect to minimum credit scores and maximum loan-to-value ratios.

As home prices continue to recover nationwide, a new study from the National Association of Home Builders suggests even a small increase in new home prices can leave hundreds of thousands of potential buyers out in the cold. Measuring housing costs against income distribution, the group estimates that as many as 206,000 households are effectively priced out of the market for each thousand dollar increase in national median new home prices. With increases in construction fees accounting for part of the rise in new home prices, NAHB Chairman Kevin Kelly said the recent study quote--highlights the real effects that building regulations have on housing affordability.

 

About Author: Jordan Funderburk

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