It is obvious to anyone who has a home loan or who even just reads about the financial news, that drastic changes have occurred in the mortgage market – taux hypothecaire.

A few important factors have developed in recent years that have drastically changed how this market operates: reduced credit availability, depressed home prices and increasing mortgage rates.

The heady rise in home prices in the early 2000’s was sure to create a price bubble and pop. But many homeowners who used these inflated values to borrow on easy credit terms, even with poor credit ratings, were bound to be caught in a trap as the prices fell – une hypotheque.

Mortgages that were given on poor credit ratings were most susceptible to depressed home prices and increased rates. As a result of loose credit policies, many borrowers who really couldn’t afford the mortgage payment were thoroughly exposed when there was an increase in their adjustable rate mortgage. Refinancing became less available as more and more of these mortgages became due. A real domino effect took place.

As more foreclosures occurred, the increasing glut of homes for sale further pushed down housing values. The fact that only the worst of the loans were the guilty parties, responsible for 60% of the loans even though they only made up 20% of the loan market, did not encourage banks to loosen. States such as Florida and California, which led the country in escalating real estate values, make up a full 36% of foreclosures.

Nevertheless, banks have pulled in the reins on lending across the board, and potential borrowers are not able to get liberal terms or borrow with poor credit ratings any longer .

What is the outcome of this? It is a return to the good old days. Some people may regret that the time of easy credit and low down payments are over, however.

Today, only good credit risks are being considered for mortgages and a reasonable down payment is being required.

What buyers who can meet these criteria can count on is the fact that mortgage interest rates are still historically low, and the real estate market is yielding some excellent values as prices go down –.