No Bubble Here! How New Mortgage Standards Are Helping
Real estate is shifting to a more normal market; the days of national home appreciation topping 6% annually are over and inventories are increasing which is causing bidding wars to almost disappear. Some see these as signs that the market will soon come tumbling down as it did in 2008.
As it becomes easier for buyers to obtain mortgages, many are suggesting that this is definite proof that banks are repeating the same mistakes they made a decade ago. Today, we want to assure everyone that we are not heading to another housing “bubble & bust.”
Each month, the Mortgage Bankers’ Association (MBA) releases a measurement which indicates the availability of mortgage credit known as the Mortgage Credit Availability Index (MCAI). According to the MBA:
“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.).” *
The higher the measurement, the easier it is to get a mortgage. During the buildup to the last housing bubble, the measurement sat at around 400. In 2005 and 2006, the measurement more than doubled to over 800 and was still at almost 600 in 2007. When the market crashed in 2008, the index fell to just over 100.
Over the last decade, as credit began to ease, the index increased to where it is today at 186.7 – still less than half of what it was prior to the buildup of last decade and less than one-quarter of where it was during the bubble.
Here is a graph depicting this information (remember, the higher the index, the easier it was to get a mortgage):
Bottom Line
Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.
*For more information on the MCAI, including methodology, FAQs, and other helpful resources, please click here.
Related Article: Why we are not heading toward a housing bubble.
I will really appreciate the writer’s choice for choosing this excellent article appropriate to my matter.Here is deep description about the article matter which helped me more. 바카라사이트
To a great degree wonderful and entrancing post. I was hunting down this kind of information and had a great time examining this one. 스포츠토토
Thankѕ for sharing your thoughts. I truly appｒeciate you efforts and
I will be waiting foｒ your further write uᥙps thank you once
again. 스포츠중계
I’m truly enjoying the design and layout οf your website.
Ιt’s a very easy on the eyes which makes іt much more pleasant foor me to cоme here and visiit moге ⲟften. 배트맨토토
I’ve been looking for photos and articles on this topic over the past few days due to a school assignment, safetoto and I’m really happy to find a post with the material I was looking for! I bookmark and will come often! Thanks 😀
GOOD DAY! I AM VERY SATISFIED VISITING HERE, BECAUSE I READ THIS ARTICLE THAT IS SO VERY USEFULL TO ME AND TO EVERYONE. THANKS FOR THIS….
I LIKE THIS BLOG, BECAUSE THE ARTICLE HAS SO TRULY GREAT FOR ME WHILE I AM READING THIS…
HAVING READING THIS ARTICLE, I HAVE SO MANY INFORMATION THAT IS TRULY GREAT ANF VERY HELPFUL TO US. THANK YOU!
정품 비아그라,비아그라구매,비아그라구입,처방전없이 초간편주문.합리적인가격.비아그라 퀵배송,비아그라온라인약국,시알리스.각종 발기부전치료제 판매 전문 온라인스토어 13년동안 단 1건도 가품판매에 관한 스캔들이 없는 믿을수 있는 스토어 입니다.
Took me time to read all the comments, but I really enjoyed the article. cc Feel free to visit my website; 카지노사이트원
I don’t know how many hours I’ve been searching for a simple article like this. Thanks to your writing, I am very happy to complete the process now.
카지노사이트777
All the best blogs that is very useful for keeping me share the ideas of the future as well this is really what I was looking for, and I am very happy to come here. Thank you very much Feel free to visit my website; 카지노사이트가이드
This is one very interesting post. I like the way you write and I will bookmark your blog to my favorites. 안전토토사이트