A number of Realtors® responding to the April RCI Survey indicated continued exceptionally tight credit conditions.
A comparison of FICO scores for loan transactions as reported by Realtors® responding to the RCI over the February/March/April time span compared with FICO scores reported by Fannie Mae’s “Acquisition Profile by Key Product Features” – showing lending conditions in the pre-boom normal housing markets of a few years ago – shows that credit availability to lower scoring applicants appears to have declined.
Realtors® provided FICO information based on their understanding of the buyers’ credit situations; in many cases the information was estimated. Overall the data seem to substantiate relatively tight credit conditions.
Additional information on a variety of topics related to current residential market conditions may be found here.
Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.