There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.
The Housing Financing Policy Center at the Urban Institute just released data revealing two reasons for the current exceptionally high credit standards:
What has been the result of these concerns?
6.3 Million Less Mortgages
The Policy Center report went on to say:
“It was so hard to get a mortgage in 2015 that lenders failed to make about 1.1 million mortgages that they would have made if reasonable lending standards had been in place. From 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”
In an interview with DSNews , Laurie Goodman and Alanna McCargo of the Policy Center further explained:
“Our Housing Credit Availability Index (HCAI)* measures the probability that mortgage borrowers will become delinquent on that mortgage for 90 or more days, which we refer to as the default risk. This measure indicates that the probability of default rose from 12 percent in 2001 to a peak of 16.5 percent at the end of 2005/beginning of 2006, before declining to the current level of 5 percent. Stated differently, lenders are currently taking less than half the credit risk they were taking in 2001, a period of reasonable credit standards.”
The cost to the economy if we’re writing fewer loans…
Goodman and McCargo put it best:
“…fewer households will become homeowners at exactly the point in the economic cycle when it is most advantageous to do so… [They] will continue to miss this wealth-building opportunity. The median family wealth for homeowners is $195,400, with their home the most valuable asset for most; the median family wealth for renters is $5,400… Fewer potential homebuyers means the housing market will continue to recover more slowly. At the same time, fewer buyers create a strain on other benefits to the economy which homebuying brings such as spending on home goods and an increase in construction jobs.”
The housing market boom and bust caused many mortgage providers and lenders to tighten their lending standards in an effort not to repeat the recent past. This paired with many homebuyers disqualifying themselves before they even apply for a loan, due to the fear of rejection, has led to many households not yet becoming homeowners.
*The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.
Dawson’s Park is also extremely affordable. This neighborhood is USDA Rural Housing approved, which means that homeowners can receive 100% financing through USDA with low interest rates and a minimal, if any at all, down payment! Find our list of Mortgage Specialists HERE
Lexington County Schools are known being one of the top, if not the best, school districts in the state of South Carolina with consistently high test scores.
The area of Lexington is growing rapidly as a suburb of Columbia, SC. The town has a friendly atmosphere and many locally owned businesses which create a sense of escape from the busy city life. For recreational activities, Lake Murray is just minutes away and provides a haven for outdoor enthusiasts. Swimming, boating, kayaking, fishing and hiking are just a few fun things to do on the 649 miles of shoreline around this 50,000 acre lake.
Sometimes we all get so busy that we forget the loved one that is always waiting for us at the door. During this holiday time, we searched for several articles that may help with keeping your favorite furry friend content during all the rush.
Dog Treats at Christmas
Besides an “atta boy” and pat on the head from you, the next greatest reward your dog likes is a yummy treat. What’s more, giving your dog a treat makes you feel good, too. The very act of rewarding your best friend with his favorite treat not only reinforces training, but helps solidify the bond you share with your canine companion.
Fortunately, organic Christmas treats are a way you can spoil your dog without giving him an unhealthy snack. If you do not have access to a doggy bakery, you can find several healthy choices online, the healthiest being an organic or all natural treat.
For instance, Pampered Paw Gifts offers dog lovers organic and all natural products like salt free Christmas doggy cakes made with a rice cake and yogurt frosting, decorated in holiday colors, and trimmed in doggy bones.
The Christmas doggy treats look like pastries that come from a high-end human bakery and are exquisitely decorated in holiday colors in various dog-themed shapes. They not only look good enough for a person to eat for a Christmas treat, but are made with the finest human-grade ingredients. So, if your dog is willing to share with you, there is no harm in taking a nibble.
Other delectable dog treats you can expect to find online are cookies, bon bons, paw prints, paw cups, bones, reindeer, presents, mittens, santa paws, snowflakes, and wag sticks made from a peanut butter recipe and iced with yogurt. All items are free of byproducts, artificial color and flavors, and preservatives.
Listed below are other safe Christmas dog treats:
ifts for Your Pets during the Holidays
‘Tis the season for gift giving and warm holiday cheer. It is important not to forget the furry members of your family during the Holidays. To help you, we have created a list of fun gift ideas for cats and dogs!
Coming Soon! New Construction Lakefront in the Desirable Award Winning Lake Carolina neighborhood of Harborside.