A new study by the Urban Institute calls for 'expanding the credit box' in order to promote not only a housing recovery, but an 
overall economic recovery. The report estimated, '1.22 million fewer purchase mortgages were made in 2012 than would have been the case had credit availability remained at 2001 levels.' The Impact of Credit Availability on Mortgage Volume,” reported that in 2001, 4.93 million first lien mortgages originated for home purchases. Another factor leading to a decrease of new home purchases was an increase of investor activity in the housing market, rising from 17.8 percent in 2001 to 39.5 percent in 2012. 'We can largely explain the drop in originations by the concurrent decline in home sales and the increase in the all-cash share. Read more
overall economic recovery. The report estimated, '1.22 million fewer purchase mortgages were made in 2012 than would have been the case had credit availability remained at 2001 levels.' The Impact of Credit Availability on Mortgage Volume,” reported that in 2001, 4.93 million first lien mortgages originated for home purchases. Another factor leading to a decrease of new home purchases was an increase of investor activity in the housing market, rising from 17.8 percent in 2001 to 39.5 percent in 2012. 'We can largely explain the drop in originations by the concurrent decline in home sales and the increase in the all-cash share. Read more
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