Lending Standards Have Changed Since The Crash in 2008

@martykelly100 talks about lending standards and how they indicate that today's market is stable.

If you’re worried about a potential housing crash, it’s important to realize the current housing market isn’t like it was back in two-thousand-and-eight. One of the easiest ways to see the difference is by looking at lending standards.

There's a tool we have in the real estate industry called the Mortgage Credit Availability Index. It's like a thermometer for how easy or difficult it is to secure a mortgage. When lending standards are less strict and it’s easier to get a mortgage, the index goes up.

And as you can see from this graph, lending standards are still under control.

Leading up to the housing crash, the index shot up over eight-hundred-and-fifty. Lending standards were loose, mortgages were easy to get, and the risk that people wouldn’t be able to pay back their loans was really high.

But fast-forward to today, and the index has gone down to ninety-six-point-five. Lenders are now more cautious, loans are given to those who can actually repay them, and both lenders and borrowers are exposed to far less risk.

In short, we’re nowhere near the extreme lending practices that contributed to the crash.
So, if you have questions about today’s housing market, or if you're interested in buying or selling a home, then call or text me today and let's connect.

And Remember.....
It matters who you choose to be your Realtor.

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Marty Kelly is a native Texan and has been a resident in Leander TX since 1996. Marty has been working in Real Estate since 2005, and he is currently the Broker for Keller Williams Realty in Cedar Park and Leander TX, helping friends & family buy & sell their homes for the best value with the least amount of stress.

Marty Kelly, Broker
Keller Williams Realty
c: 512.563.0799
e: [email protected]
w: www.MartyKelly.kw.com
APP: www.MK-KW.com

IT MATTERS WHO YOU CHOOSE.