If you want to be approved for a mortgage, you have to qualify. Which means, if you have too much debt, too little income, or bad credit, you may not be able to get a loan. Put simply, you have to have your finances in order, if you hope to borrow hundreds of thousands of dollars. But the standards lenders use to determine whether or not you’re qualified aren’t fixed. Sometimes they’re more lenient than others. That’s why the Mortgage Bankers Association tracks mortgage credit availability. Their monthly index determines whether access to credit is loosening or tightening. Any increase means potential borrowers will have an easier time getting approved for a mortgage, while a decline means standards have gotten stricter. In August, the index increased 3.9 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says availability increased across the board. “Credit availability increased in August, driven by significant activity across all indexes,†Kan said. “Of note, jumbo credit availability increased 9 percent to its highest level since March 2020.†Conforming credit availability was up 5.1 percent. (source)

Equity is the difference between what you owe on your house and what it’s worth. So, when home prices are growing, equity is too. And with the recent spike in home prices, equity has surged. In fact, according to Black Knight’s most recent Mortgage Monitor Report, tappable equity – the amount available for homeowners to borrow against while still retaining at least 20 percent equity in their homes – grew 37 percent over year-before levels during the second quarter of this year. Ben Graboske, Black Knight’s president, says homeowners have made big gains. “This is by far the strongest growth we’ve ever seen and equates to some $173,000 in equity available to the average mortgage holder, a $20,000 increase in just three months,†Graboske said. According to the report, tappable equity hit a record high at the end of the first quarter, reaching $8.1 trillion. During the second quarter, it added an additional $1 trillion to that total. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week, hovering just above last year’s historic lows. There was little movement seen for 30-year fixed-rate loans with conforming loan balances, loans backed by the FHA, and 15-year fixed-rate loans. Rates for jumbo loans saw a slight increase. Mike Fratantoni, MBA’s senior vice president and chief economist, says rates remain low but could see upward pressure by the end of the year. “Economic data has sent mixed signals, with slower job growth but a further drop in the unemployment rate in August,†Fratantoni said. “We expect that further improvements will lead to a tapering of Fed MBS purchases by the end of the year, which should put some upward pressure on mortgage rates.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Fannie Mae’s Home Purchase Sentiment Index is based on a monthly survey gauging Americans’ feelings about the housing market and overall economy. It asks respondents for their opinions about buying and selling a home, mortgage rates, home prices, their jobs and financial situation. In August, the index was largely unchanged from the month before. However, the share of participants who said they felt it was a good time to buy a home was up 7 percent. It was the first increase in buying optimism since March. Mark Palim, Fannie Mae’s vice president and deputy chief economist, says buyers expect conditions to improve in the months ahead. “The ‘good time to buy’ component, while still near a survey low, did tick up for the first time since March, perhaps owing in part to the favorable mortgage rate environment and growing expectations that home price growth will begin to moderate over the next twelve months,†Palim said. Overall, 32 percent of respondents said they thought it was a good time to buy, while 73 percent said it was a good time to sell. (source)

The typical home buyer doesn’t spend much time considering the price of gypsum products or ready-mix concrete. But the prices builders pay for building materials has an effect on buyers – even if they aren’t shopping for a new home. That’s because new home construction is the fastest way to boost inventory. And, when there are more homes for sale, home prices moderate. So, when more new homes are being built, it benefits all buyers because it helps keep prices in check. That’s part of the reason prices have been rising so rapidly over the past year. Building material costs have been increasing at a fast pace. In fact, according to new numbers from the National Association of Home Builders, material costs have increased almost 20 percent over the past 12 months. That’s made it more difficult for home builders to build the affordable homes needed to bring balance to the market and more choices to buyers. (source)

There are many gauges of U.S. home prices but the S&P Case-Shiller Indices is among the most closely followed. The index is constructed to accurately track the price path of a typical single-family home in each of the nine U.S. Census divisions. According to the most recent release, home prices are still increasing and the gains can be seen almost everywhere. In fact, Craig J. Lazzara, managing director and global head of index investment strategy at S&P, says prices have hit all-time highs everywhere but Chicago. “The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,†Lazzara said. “Home prices in 19 of our 20 cities (all but Chicago) now stand at all-time highs, as do the National Composite and both the 10-and 20-City indices.†Fortunately for home buyers, the number of homes for sale has begun to improve and should help slow the rate of price increases in coming months. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose last week to its highest level since early July. Though slight, the 1 percent increase shows home buyers remain active as the summer market winds down. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the high end of the market is still dominate. “Home purchase activity continues to be dominated by higher price tiers of the market, with the purchase average loan size now at $396,000, the highest average in five weeks,†Kan said. But while demand for loans to buy homes improved week-over-week, refinance activity was down 4 percent. Mortgage rates, on the other hand, saw little change from the week before. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

For most of the past year, average mortgage rates have hovered at, or just above, historic lows. Favorable rates helped home buyers at a time when prices and bidding wars were on the rise. But while low rates were good for buyers, they were also good for homeowners who wanted to refinance their loans. The corresponding boom saw refinance activity up nearly 125 percent over year-before levels at the end of 2020. But now, according to new numbers from ATTOM Data Solutions, the market has shifted. In fact, during the second quarter of this year, refinance activity actually fell, dropping 15 percent quarter-over-quarter. At the same time, demand for home-purchase loans was up 22 percent. Todd Teta, ATTOM’s chief product officer, says it’s a significant change. “The demand for home loans across the country shifted significantly in the second quarter as refinancing activity receded and home-purchase and equity loans increased,†Teta said. “We haven’t seen that pattern for several years.†(source)

For a prospective home buyer, the more homes there are for sale the better. After all, more available homes means more choices and a better chance at finding the one that meets your needs. Lately, though, inventory has been an issue. A lower than normal number of homes for sale has led to price spikes, more competition, and bidding wars between buyers. Which means, any news of improved inventory is good news for home buyers. That’s why recently released numbers from one online real-estate portal are encouraging. The analysis found that active listings have now risen 16 percent above where they were at their 2021 low. And while they’re still 23 percent below last year at the same time, that’s the smallest decline since September 2020. In other words, the number of homes for sale is improving and it’s helping buying conditions. (source)

Rents recently hit new highs in 40 of the 50 largest U.S. cities, according to a new analysis from the National Association of Realtors’ consumer website. The report found that, nationally, rents were up almost 10 percent over where they were last year at the same time. But while the news comes at a time when home prices have also been on the rise, historically low mortgage rates have helped counter the effect of recent home-price increases. So much so, that Danielle Hale, the website’s chief economist, says buying a starter home actually comes with a lower monthly price tag than renting in many cities. “Sky-high rents and historically low interest rates have made the monthly cost to buy a starter home lower than renting one in nearly half of the markets across the U.S.,†Hale said. It’s true. The monthly cost of owning a starter home is now lower than renting a similar-sized place in 24 of the 50 largest metros, including in cities like Orlando, Cleveland, Tampa Bay, Baltimore, and Riverside, Calif. (source)