Securing the best terms on a home loan can help buyers save money and with credit scores rising across the U.S., doing this is becoming more common. According to a new report, the average credit score of Americans applying for a mortgage in June rose to a three-year high. The data comes from mortage software company Ellie Mae.
Credit scores for home buyers averaged 731 last month – the highest since September 2016. The higher FICO scores are a product of a strong economy and plentiful jobs helping borrowers make on-time payments on their bills. The current unemployment rate nationwide is 3.7 percent, near the lowest level in 50 years.
Top tier credit scores are helpful to buyers as banks continue to impose strict lending standards.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.