Could the Housing Inventory Shortage be Causing Compliance Concerns?

Join DataVerify and industry experts for a conversation about how the current housing inventory shortage could cause compliance concerns now and in the future.

Side’s Spencer Krull on brokerages, Los Angeles real estate

During this episode of HousingWire Daily, we pressed Spencer Krull on the modern-day purpose and economic viability of a brokerage, and what Side’s distinctive model specifically offers.

eXp CEO loves Glenn Stearns’ star power

Residential real estate brokerage eXp continues to be profitable, and company CEO Glenn Sanford became a fan of Glenn Stearns through reality television. HW+ Premium Content.

Why female leadership is crucial to the mortgage industry

HousingWire recently spoke with Keri Stichler about why female leadership is crucial in the mortgage industry and how companies can advocate for inclusivity.

MortgagePolitics & MoneyReal Estate

Mortgage borrowers’ FICO scores rise to a 3-year high

Strong labor market makes borrowers more creditworthy

The average credit score of borrowers who got all types of mortgages in June rose to 731, an almost three-year high, as a strong labor market helped Americans pay their bills on time. 

The rate was the highest since September 2016, according to Ellie Mae. Measuring just conventional mortgages backed by Fannie Mae and Freddie Mac, the average FICO score was 742 for refinancings, the highest since November 2016, and 754 for loans to buy homes, which matched last month's level that was the highest since June 2017, according to Ellie Mae data. 

Higher FICO scores weren’t the result of lenders tightening standards. The Mortgage Credit Availability Index that measures how easy it is to get a loan was at a record high in June, according to the Mortgage Bankers Association. (See chart below.) The MBA's data series goes back to mid-2011, but it has biannual extrapolated data, or historical estimates, that put the MCAI at the highest since the second half of 2007.

The unemployment rate was 3.7% in June, rising from 3.6% in May that was the lowest level in almost 50 years, according to the Bureau of Labor Statistics.

Debt-to-income ratios, known as DTIs, for mortgage borrowers in June matched the prior three months that were the best since mid-2017. Ratios tend to improve as mortgage rates go down, because cheaper financing translates into lower monthly mortgage payments. The average rate for a 30-year fixed mortgage was 3.75% this week, near a three-year low, Freddie Mac said on Thursday.

The average “front end” ratio measuring a borrower's income compared to the new monthly mortgage payment was 25%, meaning a quarter of borrowers’ income was going to toward paying their home loans. The average “back end” ratio, measuring all recurring monthly debt including mortgage bills, stood at 38%.

 

Mortgage Credit Availability Index for June 2019

Most Popular Articles

Home prices are still rising, but relief for buyers is coming

Domestic home prices increased 2.3% from May to June, and 17.2% year-over-year, per CoreLogic. Twin Falls, Idaho had the highest annual increase at 40.2%.

Aug 03, 2021 By

Latest Articles

Senate grills Biden’s housing nominees over tweets

Senate Republicans today grilled three of President Joe Biden’s nominees for positions at the U.S. Department of Housing and Urban Development over their past comments in support of defunding the police

Aug 05, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please