Looser Mortgage To Benefit First-Time Home Buyers
In a report released on Thursday by the Mortgage Banker's Association (MBA), credit availability inched higher in March, driven by the ongoing economic and job market recovery.
A decline in Mortgage Credit Availability Index (MCAI) indicates that lending standards are tightening, while increases in the index are indicative of loosening mortgage credit.
The group’s MCAI rose .6% to 125.4 last month. The Government MCAI that includes mortgages backed by the Federal Housing Administration, the Veterans Administration, and the U.S. Department of Agriculture increased for the sixth time in seven months to its highest level in a year – up to .4%, the MBA said.
“As we look ahead to the expected growth in the purchase market, which will be driven by millennials and first-time home buyers, credit availability to qualified borrowers will play an important role in supporting this demand,” said Joel Kan, MBA's associate vice president of economic and industry forecasting.
Looser mortgage credit availability will definitely help Millenials and first-time home buyers closer to homeownership, especially those who do not have as much saved up for a down payment.