Anyone following recent news about Countrywide and other lenders will see a trend. A rising percentage of their sub-prime loans are experiencing delinquent payments.
So what do rising rates of delinquency have to do with buyers?
In the not too distant future, it is very conceivable that higher credit scores will be necessary for higher loan to value ratios. In other words, underwriting requirements will be tightened thereby making it difficult for some to secure financing.
There has never been a time like now to purchase a home: high amounts of inventory and low mortgage rates. This news could signal a normalization of the market.