'Excessively tight' credit
"The recovery is occurring despite excessively tight credit conditions and higher downpayment requirements, which are negating the impact of record high affordability conditions," said Larrence Yun, chief economist of the National Association of Realtors.
If lenders begin to see that housing demand is increasing and home values are rising, they may, indeed, begin to loosen those “excessively tight” credit standards. That could boost home sales and, eventually, mortgage rates.
Can mortgage rates go any lower? Some people might not have expected to ever see 3.62 percent so calling a floor is risky. But if Realtors are correct that housing is beginning to recover, it might not be long before rates are rising once again.
Story provided by ConsumerAffairs.