The average homebuyer credit score reached 737 in March, according to Optimal Blue’s Originations Market Monitor report.
That’s an all-time high for the report, which was launched in 2018.
The average credit score increase indicates that homebuyers are working harder on their credit scores in response to higher mortgage rates, tighter credit availability and stricter lending standards.
Rate lock volume in March increased 17% compared with February, due to slightly lower rates and, as the firm notes, increased prevalence of highly qualified purchase applicants.
Purchase locks increased 17% compared with February, while rate/term refi activity increased 19%, and cashout refi activity increased 11%.
The increase in lock volume comes despite affordability challenges including rising home prices and mortgage rates hovering above 6.5%.
The average loan amount in March was $367,300, an increase of $8,000 compared with February.
The average home purchase price was $463,800, an increase of increase $9,700 compared with the precious month.
Year over year, rate lock volume decreased 24%, however that was likely due to the Easter holiday weekend falling in March this year and April last year.
Photo: Engin Akyurt