Mortgage Mortgage credit, and the coming purchase storm A rebounding economy and wave of first time homebuyers are poised to push open the credit gates

Didier Malagies • March 10, 2021


Mortgage credit is still the tightest it has been in more than six years, but an unwavering February may be the calm before the purchase storm as lenders prepare for a revitalized economy, the Mortgage Bankers Association said in a report on Tuesday.


The group’s Mortgage Credit Availability Index remained unchanged at 124.6 last month, still hovering near levels previously seen in 2014. The index plunged from record highs seen in late 2019 after the COVID-19 pandemic resulted in the worst economic contraction since the Great Depression.


Measuring credit availability by loan type, the Conforming MCAI that tracks loans backed by Fannie Mae and Freddie Mac fell .7% while the Jumbo MCAI measuring high-balance loans rose .2%, and the Conventional MCAI that measures loans not backed by the government fell .3%.


The Government MCAI that includes mortgages backed by the Federal Housing Administration, the Veterans Administration and the U.S. Department of Agriculture rose .3%, MBA said.

A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.


According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, despite a virtually unaltered February, the housing market is in strong shape heading into the spring, with robust growth in purchase applications, home sales and new residential construction.


“Expected home sales growth this year is still likely to be driven by first-time buyers, spurred by millennials reaching peak first-time homebuyer age,” Kan said. “Many of these potential buyers will likely utilize FHA and other low down payment loans to purchase a home.”


However, government credit supply has increased in five of the past six months, albeit in small increments, but remains tight by historical standards. This adds another obstacle for many aspiring first-time buyers who are already navigating supply and affordability constraints, Kan noted.


But the MBA is expecting big things from first-time homebuyers in 2021. The trade organization’s chief economist, Mike Fratantoni, said that the rebounding economy and rising buyer demand dovetails with most millennials approaching peak first-time homebuyer age.


“The largest cohort of millennials are now 29, and historically, peak first-time homebuyer age is 32 or 33. The MBA is forecasting that this wave of young homebuyers will support the purchase market for at least the next few years,” Fratantoni said.


The National Association of Home Builders’ fourth quarter 2020 survey of prospective homebuyers also showed that 27% of millennial respondents planned to buy a home in the next 12 months, up from 19% in the prior year’s survey.



Start Your Loan with DDA today
Your local Mortgage Broker

Mortgage Broker Largo
See our Reviews

Looking for more details? Listen to our extended podcast! 

Check out our other helpful videos to learn more about credit and residential mortgages.

Should I lock in my interest rate with Tariffs and the environment we are in now

By Didier Malagies • May 26, 2025
Locking in your interest rate can be a smart move under the right circumstances—especially when there's economic uncertainty, like tariffs, geopolitical tension, or volatile inflation. Here are a few key considerations to help you decide: ✅ Reasons to Lock in Now: Rising Rate Environment: If inflation is persistent and the Fed continues to signal rate hikes (or holding rates higher for longer), mortgage and loan rates might increase. Market Volatility: Tariffs and global economic uncertainty can lead to unpredictable swings in rates. Locking in now protects you from upward movement. You’re Close to Closing: If you're within 30-60 days of needing the loan (e.g., buying a house), rate locks are usually worth it. Peace of Mind: Locking gives you certainty in an uncertain time, helping you budget better and avoid surprises. ❌ Reasons to Hold Off: You Expect Rates to Drop: If there's strong indication that rates will fall due to recession fears or easing inflation, waiting could save money. You're Not Ready to Act: If your closing is still months away or you're just shopping around, locking too early may be premature (and rate locks often have time limits and fees) tune in and learn more at https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

American are living longer - but they aren't prepared for retirement impacts

By Didier Malagies • May 19, 2025
Recent research from the Nationwide Retirement Institute and The American College of Financial Services highlights a significant disconnect between Americans' increasing life expectancy and their financial preparedness for retirement. As more individuals are living into their 90s and beyond, many are at risk of outliving their savings due to inadequate planning. Key Findings Longevity Risk : The U.S. Census Bureau projects that the number of Americans living to 100 will quadruple by 2054. However, only 29% of Americans express a desire to live that long, primarily due to concerns about declining health and financial insecurity. Underestimating Lifespan : A significant portion of Americans underestimate their potential lifespan. Only 27% could accurately estimate the average longevity of a 65-year-old, leading to insufficient retirement planning. Financial Literacy Gaps : The Retirement Income Literacy Study reveals that many older Americans lack knowledge in key areas such as Social Security, investments, and longevity planning, which are crucial for retirement readiness. Delayed Retirement : Economic uncertainties, including inflation and market volatility, have led 76% of surveyed individuals to consider delaying retirement to ensure financial stability. Business Recommendation To address these challenges, experts suggest: Longevity Planning : Incorporate realistic life expectancy estimates into retirement planning to ensure savings last throughout one's lifetime. Financial Education : Enhance understanding of retirement-related financial topics, including Social Security benefits and investment strategies. Guaranteed Income Streams : Consider products like annuities that provide a steady income to mitigate the risk of outliving savings. Professional Guidance : Work with financial advisors to develop comprehensive retirement plans tailored to individual needs and longevity expectations. Also look and see what a Reverse Mortgage can help with as well Didier Malagies nmls212566 DDA Mortgage nmls324329

Where do I do Mortgages?

By Didier Malagies • May 19, 2025
I do Residential Mortgages in the State of Florida only, that is where I am licensed. Most of my business is from Pinellas, Hillsborough, and Pasco County. I am doing more loans all over the State as time goes on. I love to go to my closings and will drive up to 1 hour to be there at your closing. I do Fnma/FHMC, FHA, VA, C/p, Nonqm mortgages. On the Commercial side the whole Country is open and if you are having difficulty with your lender and not going anywhere, go to www.ddamortgage.com and complete a form and I will get back with you. Technology has made it so easy to help get your mortgage processed and closed I am always available to help out and I answer your questions and teach you along the way tune in and learn at https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329 
Show More