The share of “excellent” credit scores, as estimated by consumer mortgage inquiries, increased in Q2 2018 over Q1 2018 for the purchase, refinance and reverse mortgage markets, according to the Q2 2018 Mortgage Consumer Profile Report published today by Best Rate Referrals.
Reverse Mortgage Applicant Quality Increases Most Significantly
The greatest improvement in applicant quality was for reverse mortgages, for which the share of “excellent” credit scores spiked from 9.8% in Q1 2018 to 21.7% in Q2 2018. The reverse mortgage inquirers appeared to be better informed in Q2 2018 than in the prior quarter. In Q2 2018, six consumer segments that represented renters (who are not qualified for reverse mortgages) fell from the top 10 segments inquiring about reverse mortgages. The six new segments entering the top 10 in Q2 2018 for reverse mortgage inquiries represented older, retired consumers with moderate to affluent incomes.
Regions with Highest Home Values Had Highest Share of “Excellent” Credit Scores
The three geographic regions with average home market values over $300,000 (Pacific, Mid-Atlantic and New England) provided the highest share of “excellent” credit scores in Q2 2018 for refinance inquiries. According to data from Redfin, many cities that were the most competitive for home buying fell within these regions throughout late 2017 and early 2018.
Read More in the Just Published Q2 2018 Mortgage Consumer Profile Report
- Consumer-estimated credit scores by mortgage product and region
- Home market values by mortgage product and region
- Mortgage balances by mortgage product and region
- Top consumer segments by mortgage product
- Top consumer segment profiles (including demographic and behavioral attributes)
- Marketing strategies for loan originators
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