It seems that easy access to mortgage is no longer a possibility for home buyers in the United States. According to a past report by propertywire.com, "Access to mortgage credit in the United States tightened in the first quarter of 2015, marking a pause in easy accessibility for buyers."
In the past, accessing mortgage was easier to process and do. What led to the tightening of the mortgage access when the mortgage credit availability is almost unchanged from a year ago? Propertywire explained that when there is a lower number, it means credit is tighter. Gaspark earlier noted that, "It had been getting progressively easier to obtain a mortgage since 2012, but the first several months of this year marked a change."
Looking over the previous years, mortgage credit was easiest to obtain in July 2004, when the ZMAI reached 136.4 as stated in a report by propertywire.com. However, availability tightened over the next few years or so. Propertywire further reported that, "In May 2007, both the housing and mortgage availability began a multiyear plunge." It resulting into leaving home prices down more than 22 percent and credit the tightest. Mortgages were the most difficult to obtain in September 2010, when the ZMAI was at its 11.8.value.
It might not be easy to access mortgage from time to time but it will not always be this way. Propertywire stated in a report that, "Access to mortgage credit has improved significantly, and is at 65." It is more than two thirds higher in comparison to the 2002 pre-crisis levels.
Svenja Gudell, the chief economist said that 'recent market volatility is causing some lenders to be more cautious in their underwriting.' Strict mortgage access will make it harder for buyers with low credit scores to get a home loan. Svenja Gudell further said that 'even people who can get approved for a mortgage will have fewer options in terms of available mortgage products.'