Many Markets Riding Out Falling Home Prices – GlobeStAugust 23, 2022
Jeff Taylor, managing director, Mphasis Digital Risk, tells GlobeSt.com, that borrowers are wearied and lenders are feeling the shift as well.
“Many lenders will approve borrowers for loans where housing and non-housing costs can be up to 43% of income, and sometimes higher if their credit score or down payment is strong,” Taylor said. “There is a continued surge in certain markets where borrowers feel confident in their ability to make current mortgage rates on a home at 5.5% hoping to refi in a year when we expect rates to drop back into the 4% range.”
“Borrowers need to truly weigh what they can and cannot afford on a monthly basis. Home affordability headlines don’t tell you what you can afford, your lender does.”