If you need assistance, please call 916-529-5342

This is Not 2008 All Over Again: The Mortgage Lending Factor

Thursday, November 14, 2019   /   by Jessa Mae

This is Not 2008 All Over Again: The Mortgage Lending Factor

This is Not 2008 All Over Again: The Mortgage Lending Factor


This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM



Some are afraid the real estate market may be looking a lot like it did prior to the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money. Recent articles about the availability of low-down payment loans and down payment assistance programs are causing concern that we’re returning to the bad habits of a decade ago. Let’s alleviate the fears about the current mortgage market.


The Mortgage Bankers’ Association releases an index several times a year titled: The Mortgage Credit Availability Index (MCAI). According to their website:



“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is…a summary measure which indicates the availability of mortgage credit at a point in time.”



Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available the mortgage credit.


Here is a graph of the MCAI dating back to 2004, when the data first became available:This is Not 2008 All Over Again: The Mortgage Lending Factor | MyKCM  As we can see, the index stood at about 400 in 2004. Mortgage credit became more available as the housing market heated up, and then the index passed 850 in 2006. When the real estate market crashed, so did the MCAI (to below 100), as mortgage money became almost impossible to secure.


Thankfully, lending standards have eased since. The index, however, is still below 200, which is half of what it was before things got out of control.


Bottom Line


It is easier to get a mortgage today than it was immediately after the market crash, but it is still difficult. The difference in 2006? At that time, it was difficult not to get a mortgage.


-- Thomas March Home Selling Group --- Proudly with Keller Williams Realty
Thomas March
548 Gibson Drive, Suite 200
Roseville, CA 95678
916-529-5342
DRE# 01427654

metrolist logo.png The real estate listing data marked with this icon comes from the IDX program of the Sacramento Metrolist Multiple Listing Serviceā„¢ system. Information deemed reliable, but not verified or guaranteed. Users are responsible for checking the accuracy, completeness, currency, and status of all information. All measurements and all calculations of area (i.e., Sq Ft and Acreage) are approximate. Broker has represented to MetroList that Broker has a valid listing signed by seller authorizing placement in the MLS. Above information is provided by Seller and/or other sources and has not been verified by Broker. Some properties that appear for sale on this web site may subsequently have been sold and may no longer be available. Copyright 2020 MetroList Services, Inc.
Terms and Conditions

Powered by metrolist logo.png
This site powered by CINC: www.cincpro.com