Loose lending and low rates great for first-timers [Video]
Posted on Tuesday, October 20, 2015 at 5:34:08 PM
Homebuyers who have been forced to the fringes of the market in recent years due to stringent lending standards may soon find new opportunities as lenders widen their scopes for potential borrowers.
A recent Capital Economics report explained that though entry into the housing market has been rough for first-time buyers who have had trouble meeting lenders' tough requirements, they may soon find qualifying for residential financing easier due to falling mortgage delinquency rates and additional government policies, according to HousingWire. Though the year started with quite stringent mortgage qualification standards, it may end on a much better note for first time homebuyers and others who may have been shut out from residential financing.
Lenders likely looked at Freddie Mac and Fannie Mae's mortgage buy-back policy clarifications as well as declining delinquencies and decided the market was prime for looser lending standards. Other factors are also making the housing market appear more attractive, especially to first-time buyers - specifically, mortgage rates hovering below 4 percent. The combination of eased lending standards and extremely affordable mortgages make the end of 2015 a banner quarter for first-time buyers.