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    MonitorBase Insider: What is the data telling us today?

    Apr 17, 2020 3:07:37 PM

    Interested in seeing where the hot spots are in mortgage originations? Here are some interesting stats that we are seeing in the data right now.

    Disclaimer: These are numbers that we are seeing in the MonitorBase platform, and does not necessarily  represent stats for the entire country. Although, this should give you a good idea of some interesting trends, and hopefully helps in your current origination efforts.  

    More recent mortgage.. more activity.
    We are seeing a higher trend in mortgage inquiries (mortgage application credit pulls) for households that have a mortgage opened within the past 12 months.

    In the past week 22.6% of mortgage inquiry alerts had a mortgage age between 1-12 months old. See the table below:

    Age of mortgage % of total inquiry alerts 
    1-12 months 22.6%
    13-24 months 17.6%
    25-36 months 14.8%
    37-48 months 11.1%
    49-60 months 7.4%


    This paints the picture of why many lenders are experiencing high numbers or Early Payoff Penalties. The current interest rate environment helps, but another factor that may lead to new homeowners refinancing in the first year is payment shock. Changing from a rent payment to a mortgage payment and all the utilities that come with it is a big life change.  

    Higher score... higher app rates?
    This is a new trend. Generally we see applications pretty spread out from a 620 score up to 850. Recently, we are seeing much high inquiry alert rates in the higher score ranges. 

    74.2% of inquiry alerts for the past week have a 700+ score. See below..

    Score Range % of total inquiry alerts
    700+ 74.2%
    640-699 14.9%
    620-639 3.1%
    580-619 3.9%
    350-579 3.9%

    It would appear that given the current situation with coronavirus and the unemployment that it has created, it may be discouraging lower credit borrowers from applying and taking advantage of the low interest rate market. We think this will create a lot of opportunity with Credit Migration alerts over the next year as people can get back to work and recover from financial issues that they are experiencing currently.  

    To see more mortgage trend updates like this, subscribe to the MonitorBase Blog at the top of the page or join our MonitorBase Insider Facebook Group.