Average homebuyer credit scores soared to their highest point since 2018 in March, according to Optimal Blue’s March 2024 Originations Market Report.
The average score hit 737, an all-time high in Optimal Blue’s data, which dates back to January 2018.
Scores for FHA borrowers also hit 6-year highs, clocking in at 677 in February and 676 in March. VA and conforming loan scores soared to highs not seen since 2021.
“Driven by rising interest rates and home prices, we’re witnessing the highest average homebuyer credit scores in years,” said Brennan O’Connell, director of data solutions at Optimal Blue.
“This unprecedented level of creditworthiness among purchasers is largely a result of the affordability issues borrowers face in today’s housing market, with…
Lock volumes dipped almost 10% from August, bringing them down 30% in the last three months and 60% YOY, according to Black Knight’s latest Originations Market Monitor. Purchase locks are 10.2% below pre-pandemic levels. This is the third straight month of lock activity below pandemic norms. The decline in locks coincides with interest rates rising 91 basis points in September to 6.72%, their highest point in 15 years. Refinances made up only 16% of September’s lock activity, a new low. Of that, most were cash-out refis, though they are also down 26.2% from August and 78% YOY. Rate/term locks remained basically unchanged. They are down 93.3% YOY, suggesting they’ve hit a floor now. Purchase lending accounted for most of September’s…
Overall rate locks rose 9.5% month-over-month in January, with a 19.9% increase for purchase loans and a 9.2% increase for cash-outs, Black Knight reported in its Originations Market Monitor. Rate/term refinance locks dropped for the fifth month straight, down 16.5% to its lowest level since May 2019. It is an 80% decline YOY. The refinance share of January originations fell to 43%, its lowest since July 2019. “With some $10 trillion in homeowner tappable equity in the market, it makes sense that we’d see cash-out refinance locks on the rise,” Happ said. “The significant jump in purchase originations can likely be attributed in part to typical pent-up, post-holiday demand. It could also represent skittish homebuyers hoping to lock in a…
