This fall and winter, as mortgage rates rise from their record lows, the trend of mortgage lending will shift away from refinancing to focus on lending for new homeowners.
This may be good news for homebuyers that have held off as they repair their credit or recover from the recession of 2001.
According to data compiled by Ellie Mae, a mortgage technology firm, the average credit score for loans that closed in August dropped to 734. This is the lowest average credit score since Ellie Mae began tracking data in 2011.
In addition, about 31% of mortgages closed had a score below 700. Compared to a year ago, when only 15% of loans closed held credit scores of below 700, this number gives hope to some people who have held off buying a home.
Yet, the verdict is still out on how much these restrictions will be loosened, as we will wait until new mortgage regulations that will be implemented in 2014.
Are you ready to purchase a new home, but don’t know if you qualify for a mortgage? Complete and return this mortgage pre-qualification form!
Contact David M. Damare’ Team at 919.851.0999.
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