IE Business Daily Business news for the Inland Empire.
Mortgage loans that originated during the third quarter of this year were among the strongest home loans issued in the U.S. since 2001, according to data recently released.
The average credit score for homebuyers increased five points year-over year-between the third quarter of 2015 and the third quarter of 2016, rising from 734 to 739, according to CoreLogic in Irvine.
Also during the third quarter of this year, the share of homebuyers with credit scores under 640 had dropped by more than three-quarters compared with 2001,CoreLogic reported in its national Housing Credit Index.
“While low down payment and high payment-to-income products are available today, borrowers generally need good credit scores to qualify, [for a mortgage loan]” said Frank Nothaft, CoreLogic’s chief economist, in a statement. “This may be a factor that has led to the drop-off in applications from those with lower credit scores during the last few years.”
The index measures several credit risks associated with mortgage loans, including borrower credit scores and debt-to-income ratio. It is not broken into regional data.
