Home Mortgages: Rates Up, Requirements Easing

The media has extensively covered the rise in mortgage interest rates since last fall (from 3.42% last September to the current 4.1% according to Freddie Mac). However, a less covered aspect of the mortgage market is that requirements to get a mortgage have eased while rates have risen.
The Mortgage Bankers Association (MBA) quantifies the availability of mortgage credit each month with their Mortgage Credit Availability Index (MCAI). According to the MBA, the MCAI is:
“A summary measure which indicates the availability of mortgage credit at a point in time.”
The higher the index, the easier it is to get a mortgage. Here is a chart showing the MCAI over the last several months as rates have increased.
Have requirements for attaining a mortgage actually eased?
Yes. Here are two examples:
- FICO® Score – the credit score which helps determine a buyer’s eligibility. The score required to attain a mortgage has been falling over the last five months:
- Down Payment Requirement – the percentage of the purchase price necessary to place as a down payment on a home. To make this point, let’s look at the percentage of first-time buyers who have put less than 5% down over the last several years as compared to the 1st quarter of 2017:
Bottom Line
Whether you are a current homeowner looking to move to a home that will better serve your family’s current needs, or a first-time buyer looking for a starter home, it is easier to get a mortgage today than it has been at any other time in the last ten years.
Is a Newly Built Home Right for You? The Pros and Cons
An agent can walk you through the pros and cons of considering a newly built home and help you decide if it makes sense for you.
How To Buy a Home Without Waiting for Lower Rates
Even if mortgage rates don’t drop substantially, there are still ways to make buying a home more affordable.
A Record Percent of Buyers Are Planning To Move in 2025 – Are You?
Find the right agent to make sure your house is prepped, priced, and marketed well, so you can get ahead of the competition!
The Real Benefits of Buying a Home This Year
Let’s break down why homeownership is worth considering in 2025 and beyond, and how it can help set you up for the future.
Do You Know How Much Your Home Is Worth?
The only way to get an accurate look at what your house is really worth is to talk to a local real estate agent.
Buying a Home May Help Shield You from Inflation
A fixed-rate mortgage protects your budget, and home price appreciation grows your net worth.
Home Price Growth Is Moderating – Here’s Why That’s Good for You
It’s crucial to understand what’s happening in your local market and a local real estate agent can really help.
Are Investors Actually Buying Up All the Homes?
The idea that Wall Street investors are buying up all the homes and making it impossible for you to compete is a myth
Are You Asking Yourself These Questions About Selling Your House?
The market isn’t at a standstill. Every day, thousands of people buy, and they’re looking for homes like yours.
Buyer Bright Spot: There Are More Homes on the Market
The number of homes for sale has grown a whole lot lately and that’s true for both existing and newly built homes.