As home prices continue to rise, mortgage lenders are becoming increasingly cautious in their lending practices. Nearly 70 percent of mortgages in 2020 went to those with a credit score of at least 760 while the median credit score for those receiving loans in the fourth quarter of 2020 was 786.
Lenders are increasingly concerned about borrowers losing their jobs due to the pandemic and some are report4edly asking those applying to sign a statement that they have no intention of requesting forbearance once they are approved. The legality of this is not clear.
Analysts expect mortgage rates to rise as the year goes on and it may be easier to acquire a loan at that point.