“Loosened mortgage credit would offset some of the impact of rising rates, which make homeownership more expensive,” said Jed Kolko, chief economist at San Francisco-based property- listings service Trulia Inc. “Because rates are rising, demand for refinancing has plummeted and some banks have suggested that would open up capacity for home-purchase lending.”

The U.S. homeownership rate fell to 65 percent this year, its lowest level since 1995, according to Census Bureau data, as fewer people were able to qualify for a mortgage. Banks are starting to ease credit with home prices across the country rising 12.1 percent in June from a year earlier, according to the S&P/Case-Shiller index of 20 cities.

Cash Buyers

Prices in some of the hardest-hit markets have rebounded faster. Las Vegas gained 24.9 percent, Phoenix showed a 19.8 percent increase, Detroit rose 16.4 percent Miami-area values were up 14.8 percent.

Private-equity firms such as Blackstone Group LP building rental businesses and other cash buyers have helped lift house prices in cities showing some of the biggest gains. Their mass purchases have made it more difficult for borrowers seeking mortgage financing, as they compete for a shrinking supply of properties.

In Florida, lenders including JPMorgan and mortgage insurers this year removed many of the additional requirements that had helped to push the share of cash buyers above 45 percent in the second quarter, said Rob Nunziata, co-Chief Executive Officer of FBC Mortgage LLC.

Florida Downpayments

JPMorgan decreased the minimum downpayment on mortgages made in Florida for primary residences to 5 percent from 10 percent and down to 10 percent from 20 percent for second homes, according to Bonitatibus.

“Those restrictions have handcuffed Florida buyers,” Nunziata said, also referring to mortgage insurers and banks. “When you had restrictions telling buyers they had to put down an extra 5 to 15 percent in some cases, that eliminated a lot of potential buyers from qualifying.”

Mortgage insurers that restricted coverage during the housing crisis, including MGIC Investment Corp. and Genworth Financial Inc., have eased underwriting guidelines this year as the market improves.