Americans Expect Tight Credit to Continue For Housing in 2012, Survey Reveals
57% expect mortgages market to be "harder or the same" to obtain as 2011, Less than 12% say it will be easier
Norwalk, Conn. — March 14, 2012 — Nearly 6 in 10 respondents to a February 2012 survey conducted by Freescore.com expect tight housing credit to continue in 2012.
Even though most economists expect mortgage rates to continue near their record lows for the next several months, the 300 respondents participating in this survey indicated they expect mortgages to be difficult to obtain for borrowers as a whole. Nearly 4 in 10 (38.4 percent) said mortgages would be more difficult to obtain than last year, and another 36.4 percent said it would be as difficult in 2012 as it was last year.
Their responses were similar to the opinions they gave regarding their expectations for the housing market, which 7 in 10 expect to be weaker, or no better, in 2012 than in 2011.
From the survey:
Q. Do you think it will be harder, easier, or the same to get a mortgage in 2012 vs. 2011?
|The same||36.84 %|
|Don't know||13.00 %|
Even though survey respondents said they expect mortgages to be more difficult to obtain, they were slightly more positive when asked about their own ability to obtain financing. More than 1 in 4 of the respondents said they were less confident about their ability to obtain a loan this year. Almost 15 percent said they were more confident. Thirty-nine percent expect no change, while the others responded that they did not know.
Q. Do you feel more or less confident about getting a home mortgage than you did a year ago?
|Less confident||25.08 %|
|More confident||14.55 %|
|The same||39.01 %|
|Don't know||21.36 %|
The data were collected from respondents from an opt-in panel from Survey Sampling International.
Important to note, more than one in five respondents (22.9 percent) said they did not know their credit scores prior to applying for a mortgage. This could factor into their opinion in obtaining a loan. Knowing credit scores in advance can help consumers better understand their credit standing and negotiate better rates. Borrowers with higher credit scores can more easily secure certain types of home loans, both traditional mortgages and home loan refinancing under the government mortgage modification programs.
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