Wednesday, April 19, 2017

Mortgage Rates Up, No Problem in Boston!



mortgage rates in boston
The spring market is here and we have been experiencing plenty of activity in the Boston real estate market. While most the country is experiencing a shortage of homes for sale, the northeast has an adequate amount of homes on the market but still many would be home buyers are hesitant because mortgage interest rates have raised over the last few weeks. The media has extensively covered the rise in mortgage interest rates since last fall (from 3.42% last September to the current 4.1%). 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. Month after month the MCAI rates have increased.  But, have the requirements for attaining a mortgage eased?  All signs point to yes. Here are two examples:
  1. 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.
  1. Down Payment Requirement – the percentage of the purchase price necessary to place as a down payment on a home. The percentage of first-time buyers who have put less than 5% down over the last several years has gone up.
No matter what kind of Boston homebuyer you are, it is easier to get a mortgage today than it has been at any other time in the last ten years. When you are ready to buy a home in Boston, contact a Boston real estate agent

Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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