Four million mortgage loans went “missing” in the U.S. between 2009 and 2013. That is how analysts at The Urban Institute described the number of mortgages that could have been entered into if lenders were accepting similar levels of creditworthiness from potential borrowers as they did in 2001. Lenders have implemented their own credit overlays on top of more stringent post-crisis lending standards from FHA, Freddie Mac and Fannie Mae. The 2008 crash even made households with excellent credit more rare: credit ratings of 720 and above among borrowers are 8.9 percent less likely as compared to 2001. Medium and low-credit households were hit even more remarkably. Borrowers with scores between 661-720 and with scores less than 660 are 37 percent and 75.8 percent less likely, respectively. That means that households with exemplary credit are still the primary movers of the recent mortgage market rebound. Meanwhile conforming no point 30 year fixed mortgage rates average 3.75 percent while 15-year rates average 3.0 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.