Real Estate News

NAR says access to mortgages is increasing

Published: 22 Mar 2017

Though there may be challenges for securing a home, the National Association of Realtors said that the market could favor those looking for a new mortgage, according to a recent post.

Jonathan Smoke, that organization's chief economist, said that mortgage credit access has increased within the past sixth months, along with other factors which could be in the future homeowner's favor. These include high demand, increased employment and a shrinking median time for properties to stay on the market.

Supply may be low, but consumer mobility could make up for this by empowering them to take action sooner, Smoke hinted. He also added that the buyer will most likely still have leverage despite a possible rise in rates throughout the rest of the year.

Obviously, not every market can expect the same growth, so there's a chance this trend will manifest differently across the board. In the competitive Boston market, for example, scarcity does not seem set to parallel access.

Trulia Chief Economist Ralph McLaughlin made this case to the Boston Globe recently, arguing that those buying homes aren't going to have the opportunity they've had in the past.

"This spring housing market is shaping up to be another doozy for home buyers," McLaughlin said. "Housing affordability is the key to helping break yet another year of gridlocked inventory, but all signs are showing that homes this spring will be much less affordable than last year."

In a way, this could simply reflect similar trends from 2016. Last February, CNBC reported a likewise case, in which the spring market also came with low inventory. At the time, the decline in available homes reached what the source called "record little" for sale, showing multiple signs of notably low figures across the country in different regions.