Credit Conditions Still Difficult But Slowly Easing

Credit Conditions Still Difficult But Slowly Easing

Posted in Economist Commentaries, by Jed Smith, Managing Director, Quantitative Research on March 13, 2015
Qualifying for a mortgage is still generally difficult, although becoming easier, according to the January 2015 REALTORS® Confidence Index Survey.  Some respondents in states such as TX, CA, and NY reported that more people are qualifying for credit.  About 4 percent of REALTOR® respondents reported a purchase by a buyer with credit score of less than 620, up from about 1-2 percent in 2012-2014. In a normal market, the share of credit scores below 620 would be closer to 5 percent. Almost half of  REALTORS® providing transaction credit score information reported FICO credit scores of  740 and above; in 2013, the share was hovering at about 60 percent.Potential buyers facing credit limitations might want to consider a mortgage origination by community banks and credit unions.