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.
MB Insider Report June 4th: Low to Moderate Income Recession?
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.
By the numbers, the more recent mortgage, more likely someone is to apply. We are still 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 20.72% 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 |
20.72% |
|
13-24 months |
13.51% |
|
25-36 months |
11.84% |
|
37-48 months |
7.15% |
|
49-60 months |
4.17% |
Older mortgages are starting to join the game. The largest change here has been an uptick in some of the older mortgages jumping back into the market.
First Time Homebuyers are regaining ground.
Over our last report, we’re continuing to see a climb in the number of borrowers with no mortgage, applying for a mortgage:
|
Number of Open Mortgaes |
% of total inquiry alerts |
|
0 Open Mortgages |
27.62% |
|
1 Open Mortgage |
60.90% |
|
2 Open Mortgages |
8.72% |
We continue to warn you, there is still in a high risk zone for Early Payoff Penalties.
Still a trend, the higher score... the higher the application rates? Coming back to this trend because it's new, and it’s showing no sign of stopping. We typically see more even distribution in credit scores 620 score up to 850. Recent credit pulls show a disproportionate number of people who are in the market for a mortgage today have a FICO score that is above 700.
|
Score Range |
% of total inquiry alerts |
|
700+ |
73.0.% |
|
640-699 |
15.53% |
|
620-639 |
3.26% |
|
580-619 |
4.41% |
|
350-579 |
3.77 % |
We are starting see the beginning of a recession, but it seems to be a low to moderated income household recession. Generally speaking, the lower and moderate income and lower FICO score households are not applying or taking advantage of these low interest rates. The interest rated drops that are meant to stimulate and help the mortgage industry are helping, but they are only helping those with reserves, not those who have been recently laid off.
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