Potential buyers of homes for sale in Fort Lauderdale and Fort Lauderdale condos for sale find it extremely difficult to obtain loan financing when mortgage credit is tight. As a result, fewer applicants will qualify for loans resulting in fewer homes being sold.
However, there is positive news from the Mortgage Bankers Association (MBA) indicating mortgage credit has loosened. Furthermore, the Mortgage Credit Availability Index - which scores any increase in availability as credit loosening and less availability as requirements as tightening - showed an availability increase of 1.5 percent as compared to September.
MBA’s chief economist, Mike Fratantoni recently commented that the results in the month of October are partly because of new loan programs. Mr Fratantoni said, “Credit availability increased in October mainly as a result of new conforming loan programs, many of which were affordable housing programs which have lower down payment requirements.” He added, “A closer look at the numbers reveals that conforming loans did see the biggest increase, rising 2.7 percent over September.”
Even so, loans across all categories loosened from the prior month including FHA loans, conventional and jumbo mortgages.
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