HSH.com has compiled the 10 most important factors that will impact 2010’s mortgage market. The ‘2010 Outlook’ is designed to answer some of the biggest questions facing the mortgage and housing markets moving forward.
Will rates increase next year? Will credit conditions ease at all? What about home prices?
Over the past year or so, the daunting task facing potential homebuyers hasn’t been locking in on a low mortgage rate, it has been whether or not you can qualify for financing amidst the strict lending conditions. The last issue of HSH’s Market Trends Newsletter, “Rates Ease Back Slightly,” compares it to “a group of penniless children staring in the candy-store window: You can look, but you can’t buy.”
“Mortgage rates eased back a little bit [last] week. Although the price of money is quite attractive, the availability of it remains difficult for many borrowers.”
The current state of both the housing market as well as their own finances have caused mortgage giant Fannie Mae to tighten their lending criteria. Fannie Mae will increase their requirement for a minimum credit score of 620, up from 580 beginning November 1. The change covers virtually all loans in today’s marketplace, including FHA and VA loans.
Certain loans will remain exempt from the credit score increase such as manually underwritten loans with nontraditional credit and originations under Refi Plus or DU Refi Plus programs.
HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.
