There are 4 reasons why rising mortgage rates are good, MarketWatch reports in an article by Any Hoak.
“There’s a silver lining to rising mortgage rates, which have crept up over the past year. It’s now easier to get a mortgage — and it won’t likely take as long to close the loan, either,” the report says.
Perhaps the most significant improvement in the mortgage market is that credit standards are finally loosening. Borrowers who could have qualified for a mortgage a decade ago have been denied loans due to lenders’ tightening standards. But now, as the home market improves, credit standard are returning to a normalized level.
Read the article: 4 reasons why rising mortgage rates are good.
“Rising rates are encouraging lenders to rethink their lending guidelines and bring in more business,” said Erin Lantz, vice president of mortgages at Zillow, a real-estate website. Its Zillow Mortgage Marketplace connects borrowers with lenders online. “They haven’t had to do that reassessment of their guidelines [until now] because they were so busy with the refinance volume.”