Are We heading toward a real estate Bubble? (Part 1) Today, some are afraid…
Are We heading toward a real estate Bubble? (Part 1)
Today, some are afraid the real estate market is starting to look a lot like it did in 2006, just prior to the housing crash.
One of the factors they’re pointing to is the availability of mortgage money. Recent articles about the availability of low-down payment loans and down payment assistance programs are causing fear that we’re returning to the bad habits seen 15 years ago.
Let’s alleviate these concerns.
Several times a year, the Mortgage Bankers Association releases an index titled The Mortgage Credit Availability Index (MCAI).
Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available mortgage credit becomes. Here’s a graph of the MCAI dating back to 2004, when the data
first became available:
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 somewhat since. The index, however, is still below 150, which is about one-sixth of what it was in 2006… (Part 2 will be published in few day)
Source: April,2020. Keeping Current Matter
Realtor S.0172994 The Dadon Group with Home Smart
את התגובות המקוריות לפוסט ניתן לקרוא בתחתית דף הפוסט הנוכחי באתר או בקישור לפוסט בפייסבוק וכמובן שאתם מוזמנים להצטרף לדיון
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