How Rising Mortgage Rates Can Help Homeowners
Rates for 30 year Conventional loans went up a full percent recently. I feel there is no reason to panic. For the homeowners that refinanced, their rates are the lowest they will ever see. We will see a drop in refinancing and banks still need to make money.
Since the market boom went bust back in 2006, banks tightened their loan requirements to the point where the average person couldn't get a mortgage. In order for banks to continue to make money they will have to lessen their requirements to buyers for mortgages. This does not mean banks will go back to if you have a heartbeat you will get a mortgage. But, I feel confident they will lessen credit standards in order to increase loan originations. Time will tell.
