Mortgages and homes alike hard to come by
Posted on Tuesday, September 29, 2015 at 10:28:49 AM
What do mortgages and homes have in common? Availability for each is tight these days, as homebuilders work to beef up inventory and lenders keep their credit standards strict in the wake of global economic volatility.
While the housing inventory in the U.S. has begun slowly increasing, the summer supply was tight, which may have made it difficult for potential homebuyers to find what they were looking for. If that didn't make things hard enough, though, mortgage credit standards remain strict. Many people don't even get to take a proper look at the limited inventory of homes available, because qualifying for residential financing can be too difficult.
However, things are looking up for mortgage access and housing inventory. Zilllow reported that the construction of homes is gradually accelerating, which will stabilize prices and give potential homebuyers more options on the market. Additionally, the online real estate database noted that many experts expect mortgage credit access to improve, with some worried that the market for residential financing may even become "too lax."
While a number of forces may be combined to make homes more difficult to purchase in recent months, people in search of a house of their own will likely see these conditions fade as the year closes. With mortgage access relaxing and housing inventory on a steady rise, as well as at least a couple more months with historically low interest rates, purchasing a home will likely get easier as time goes.