Homebuyers: Lending Standards Are Still Tight, but New Credit Scores May Help

Home sales are near a 31-year low due to strict lending criteria, high mortgage rates, and rising homeownership costs. Post-2008 reforms tightened mortgage standards, excluding many creditworthy low-income and minority borrowers lacking traditional credit history. New scoring models now include rent and utility payments to better assess creditworthiness. Mortgage delinquency and default rates are at historic lows, benefiting investors and keeping rates lower than they might be, but millions of potential borrowers remain shut out.