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.
“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:
- 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.
- 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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