Economists' Outlook

Housing stats and analysis from NAR's research experts.

Using NAR Research to Address Prospective Buyer Concerns “Credit Is Tight. Can I Get a Mortgage?”

Credit availability is currently easing—but is still tight for many people.  Work by Dr. Laurie Goodman of the Urban Land Institute (summarized in a REALTOR® University presentation)  shows that the proportion of potential home buyers with credit under 660 is currently much lower than was the case in normal credit markets in the year 2000 time frame.  Prime credit borrowers are generally able to get credit; this is much more difficult for people with lower credit scores.

Interest rates have been relatively low, but low interest rates are not particularly valuable if one cannot get a loan.  One of the more spectacular stories associated with the current levels of tight credit was the credit turndown received by Dr. Ben Bernanke to refinance his mortgage:  He was Chairman of the Federal Reserve!

credit

At this time some of the major financial institutions which were badly burned in the last credit crisis appear to have reduced their home mortgage lending efforts.  Informed observers have been suggesting that regional and local banks as well as credit unions may be more receptive to potential buyers.  A REALTOR® can help with questions about buying a house and may be able to make some suggestions about credit availability in the local area.

Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.

Advertisement

Comment Policy

The opinions expressed in reader comments sections on this website are those of the reader and not NAR or REALTOR® Magazine.

About Economists' Outlook

Visit this blog daily to see what NAR experts are saying about the economy, the housing market, and other factors that will impact your business.

Housing Minute

Housing Minute is a monthly video series highlighting the latest housing data from the National Association of REALTORS® in a minute or less.