MY BLOG - Working For You Every Step of the Way!

head_left_image

This is Not 2008 All Over Again: The Mortgage Lending Factor

This is Not 2008 All Over Again: The Mortgage Lending Factor

This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM

Some are afraid the real estate market may be looking a lot like it did prior to the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money. Recent articles about the availability of low-down payment loans and down payment assistance programs are causing concern that we’re returning to the bad habits of a decade ago. Let’s alleviate the fears about the current mortgage market.

The Mortgage Bankers’ Association releases an index several times a year titled: The Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is…a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available the mortgage credit.

Here is a graph of the MCAI dating back to 2004, when the data first became available:This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM  As we can see, the index stood at about 400 in 2004. Mortgage credit became more available as the housing market heated up, and then the index passed 850 in 2006. When the real estate market crashed, so did the MCAI (to below 100), as mortgage money became almost impossible to secure.

Thankfully, lending standards have eased since. The index, however, is still below 200, which is half of what it was before things got out of control.

Bottom Line

It is easier to get a mortgage today than it was immediately after the market crash, but it is still difficult. The difference in 2006? At that time, it was difficult not to get a mortgage.

 

Thinking of buying or selling in Leisure World MD?
Barbara Michaluk, Weichert Realtor and Authorized Leisure World Specialist 240-506-2434 or go to BarbaraSellsMDhomes.com

My AR banner 2017

Barbara Michaluk, Realtor

Phone 240-506-2434

Email: michaluk@verizon.net  /  Web: BarbaraSellsMDhomes.com

Authorized Leisure World Specialist / Senior Real Estate Specialist /
Internet Marketing Specialist / Certified E-Pro / Certified Staging Agent

Weichert Realtors / 3816 International Dr / Silver Spring, MD 20906

Authorized Leisure World Specialist     Barbara Michaluk Graduate Internet Marketing Specialist Barbara Michaluk Senior Real Estate Specialist   

Comment balloon 2 commentsBarbara Michaluk • November 14 2019 07:03PM
This is Not 2008 All Over Again: The Mortgage Lending Factor
share
This is Not 2008 All Over Again: The Mortgage Lending Factor Some are afraid the real estate market may be looking a lot like it did prior to the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money… more
Should You Negotiate with a Home Seller to Buy in Leisure World MD?
share
Should You Negotiate with a Home Seller to Buy in Leisure World MD? For those who want to buy a home, it generally is a good idea to remain open to negotiating with a seller. That way, you can acquire your dream residence without delay. Now, let… more
VA Home Loans by the Numbers
share
VA Home Loans by the Numbers Some Highlights: The Veterans Administration (VA) Home Loan is a benefit that is available to more than 22 million veterans and 2 million active duty service members to help them achieve the dream of… more
Leisure World MD Baby Boomers Stay Active with Frequent Walks
share
Leisure World MD Baby Boomers Stay Active with Frequent Walks The Baby Boomer Club is a group of residents who like to socialize. They picnic together, watch movies and live musical shows – and walk! Residents do not have to be a member of the Club… more
Leisure World Maryland Market Report Nov. 4, 2019
share
Leisure World Maryland Market Report Nov. 4, 2019 Silver Spring, MD 20906 Now is a Good Time To Sell in Leisure World of Maryland! Inventory is low and sellers have little competition! Here's what's happening in Leisure World of Maryland! … more
Homes for sale in Leisure World of Maryland November 2019
share
Homes for sale in Leisure World of Maryland November 2019 Homes for sale in Leisure World of Maryland Nov., 2019 The best 55+ housing opportunity in Montgomery County, Maryland! Living at Leisure World is a great lifestyle choice – its… more
Take a private tour of Leisure World of Maryland
share
Take a private tour of Leisure World of Maryland If you're thinking of buying a home in Leisure World, I invite you to learn more about this wonderful community with my private escorted tour. As a full-service Realtor and Authorized Leisure World… more
Discover the 55+ Leisure World of Maryland Active Senior Community
share
Discover the 55+ Leisure World of Maryland Active Senior Community Leisure World of Maryland is a popular 55+ gated community in Silver Spring, Maryland 20906. You will find Leisure World of Maryland offers abroad selection of home choices… more
3 Reasons This is NOT the 2008 Real Estate Market in Leisure World MD
share
3 Reasons This is NOT the 2008 Real Estate Market in Leisure World MD No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the… more
Homeowners in Leisure World Are Happy! Renters? Not So Much.
share
Homeowners in Leisure World Are Happy! Renters? Not So Much. When people talk about homeownership and the American Dream, much of the conversation revolves around the financial benefits of owning a home. However, two recent studies show that the… more