Tight Credit Access to Hinder Housing in Final Quarter

While the fall months look to be ""unprecedented"" for the housing market, ""LendingTree"":www.lendingtree.com expects tight lending requirements will keep many borrowers from taking advantage.

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According to the online finance and lending network's Monthly Mortgage Review, the summer's average mortgage rate was 3.91 percent for a 30-year fixed, with the average home loan just more than $200,000. While LendingTree expects mortgage rates to hover near their record lows in the fall months, access to credit is expected to remain constrained as the industry works to adapt to new housing regulations.

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""Home values are beginning to improve just as we approach the close of the home-buying season,"" said Doug Lebda, founder and CEO of LendingTree. ""Home prices are still below the levels they were five years ago, creating an excellent opportunity for first-time homebuyers to enter the market. Homeowners who want to refinance may find it is easier to meet loan-to-value requirements; however, mortgage lending overall is expected to remain tight due to continued uncertainty around housing regulations.""

Mortgage rates spent most of the summer consistently hitting new record lows before bouncing back at the beginning of August. However, news of further efforts from the ""Federal Reserve"":www.federalreserve.gov/ to aid economic recovery sent rates spiraling back down.

With both major party presidential candidates presenting different strategies for dealing with the slowly recovering housing market, the upcoming election also has experts and investors wondering about the future.

No matter the outcome in the presidential race, if the Fed's commitment to a third round of quantitative easing doesn't translate into a healthier job market, LendingTree said any housing recovery may not be able to sustain itself.