With the recent rise in mortgage rates, analysts predict that there will become more credit available to consumers in 2013. As the mortgage rates have risen from 3.59 percent to 4.68 percent for a 30-year-fixed-rate mortgage. As the mortgage rates increase, it lowers the affordability index. The affordability index is a measurement of the cost of housing relative to the median income for an area. When affordability is at 100 percent, it means that the median income has enough income to afford to purchase housing. The lenders are accounting for the increase in mortgages by lowering the standards for purchasing a home making credit available to more home buyers.
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