New data suggests that mortgages are easing in the housing sector, but does it even matter anymore?
According to the new Mortgage Bankers Association ‘Mortgage Credit Availability Index’ by Inman News, mortgages are easing, making it easier for anyone to get one. Consumer mortgages inched up in May from April and stood almost 9 points higher than the benchmark point in March 2012.
Of course, mortgage loan access is directly correlated with rising interest rates. The two grow simultaneously. It’s how financing cycles work. Lenders are becoming more confident in making new loans as home prices rise. Lenders are more interested in putting capital into play when the returns are higher.
Real estate investors are already finding a plethora of ways to finance their deals and free up equity without having to turn to the big banks.
In the past, many have considered tight conventional mortgage markets to be a barrier between home price and sales volume growth. However, this may no longer be as big a factor as it once was.
After all, there is no reason that regular home buyers can’t tap into alternative mortgage opportunities. From crowdfunding, to peer-to-peer lending and private mortgages to seller financing, there are many resources for getting a home loan without perfect credit. Then of course, there is family financing which can be more convenient for borrowers and a great way to get a better return on safer investments for individuals making the loans.
In conclusion, there is no doubt that mortgages are easing. Now is the optimal time for buying a home, and there is plenty of cash out there for creative homeowners and home buyers willing to their put minds to it. Explore the alternative options that are currently made available.
Real estate investors that provide direction towards these sources will likely be the beneficiary of more deals and higher yields.
