Today Century 21 revealed the results of a new survey gauging the impact of mortgage lending on the recovery of the housing market. The survey queried more than 1,500 of our real estate professionals including franchise owners, brokers, office managers and agents. The key takeaway? The lending environment is too constraining for potential homebuyers, slowing the rebound of the housing market and the economy in general.
According to the Century 21 survey, the pendulum has swung too far towards overly stringent credit scores, high down payment requirements and a general lack of available financing, keeping potential buyers from moving forward.
How big is the impact? The numbers speak for themselves:
- 89% of Century 21 real estate professionals had at least one customer in the past six months experience some level of difficulty in qualifying for a mortgage loan
- 75% of survey respondents had one or more transaction fail in the last six months due to customers’ inability to obtain mortgage financing
- 93% of all respondents estimated they could be doing more home sale transactions if their customers had a quality subprime mortgage alternative available to them
You can view the complete findings here.
Have you or someone you know experienced difficultly receiving a loan? Share your feedback with us in the comments section below.