Excellent Mortgage Charges, LTV and Credit score Scores

by Calculated Threat on 6/30/2025 09:51:00 AM

As we speak, within the Calculated Threat Actual Property Publication: FHFA’s Nationwide Mortgage Database: Excellent Mortgage Charges, LTV and Credit score Scores

A short excerpt:

Listed below are some graphs on excellent mortgages by rate of interest, the typical mortgage rate of interest, debtors’ credit score scores and present loan-to-value (LTV) from the FHFA’s Nationwide Mortgage Database by Q1 2025 (launched final Friday).
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This exhibits the surge within the p.c of loans beneath 3% beginning in early 2020 as mortgage charges declined sharply in the course of the pandemic.

Word that a pretty big proportion of mortgage loans have been beneath 4% previous to the pandemic!

The p.c of excellent loans beneath 4% peaked in Q1 2022 at 65.1% (now at 53.4%), and the p.c beneath 5% peaked at 85.6% (now at 71.3%). These low present mortgage charges made it tough for owners to promote their properties and purchase a brand new house since their month-to-month funds would improve sharply.

This was a key cause present house stock ranges have been so low. Nevertheless, time is eroding this lock-in impact.

There’s far more within the article.