Have you been thinking about buying a home but haven’t due to restrictive mortgage loan requirements? Well, now may be the time to reconsider and take advantage of the still low interest rates. According to some of the latest reports released by several federal agencies, obtaining a mortgage may have just gotten easier for you.
According to the Federal Reserve Board and their latest “Senior Loan Officer Opinion Survey on Bank Lending Practices”, it appears that banks have been easing their requirements for consumers to get a real estate mortgage.
Fannie Mae, a government-sponsored enterprise (GSE) and a leading source of financing for mortgage lenders, is quoted as saying, “The Federal Reserve’s Senior Loan Officer Opinion Survey showed that banks reported easing lending standards for residential mortgages over the three months ending in April (2016), marking a two-year stretch of easing.”
As one might expect, with the easing of lending requirements more consumers would qualify for and obtain a home loan. Consequently as home sales increase, so do home prices.
The CoreLogic National Home Price Index says that nationally home prices rose 6.7 percent on a year-over-year basis.
Interest rates are still near historic lows. The past three months has seen rates between 3.58% and 3.84%. Rates are not projected to make any great changes in the near future. But with the ease of lending standards and the resulting increase in homes sales, now may be the best time for you to consider buying a home due to the corresponding increase in home prices.
You know the old adage. Buy low, sell high! The prices are climbing due to the increase of qualified buyers. Maybe it is time for you to take advantage of the eased lending requirements and see if you qualify for a home loan!
Contact Margaret Hitchcock of Hitchcock Realty today at (252) 269-2893. Margaret is an experienced Realtor who works with mortgage lending professionals on a regular basis. Margaret is best suited to help you when it comes to finding a home that fits your needs!