Brokers and lenders originated fewer home loans in November on a year-over-year basis, according to LPS Applied Analytics.

The firm's Mortgage Monitor Report indicated that mortgage originations during the month fell by 30 percent even though mortgage rates and home prices continue to make homeownership much more affordable. The report showed that there were 537,720 originations in November, down significantly from the previous December.

However, the report noted that stricter lending standards have made it more difficult for prospective borrowers with low credit scores to get approved for home loans.

It was found that only 6 percent of mortgage originations not backed by the Federal Housing Administration were for borrowers with credit scores below 660 and a loan-to-value ratio greater than 80. Meanwhile, FHA loan originations accounted for 22 percent loans created during the first eleven months of 2011.
 
Additionally, the mortgage delinquency rate fell by 25 percent compared to its peak in January 2010, the report stated. In November the delinquency rate dropped to 8.15 percent, while seriously delinquent borrowers had a lower rate of 7.67 percent.