It has become a common refrain: “It’s too hard to get a mortgage.” But is it true?
An analysis from economists at Goldman Sachs GS -1.52% tries to shed some light on the question by measuring credit availability along several different dimensions, including common underwriting measures such as credit scores and loan-to-value ratios. The analysis also incorporates indirect measures, such as the share of homes being purchased with cash and the share of loans that aren’t government backed.
The conclusion: Along almost every dimension, mortgage credit is tighter than during the 2000-2002 period, before lenders really relaxed their standards.
This is a potential problem for the housing market because the “next phase of the housing recovery depends crucially on mortgage credit availability,” writes Hui Shan of Goldman.