Moreover, government loan products gained market share as FHA foreclosure activity increased due to non-conforming loan volumes, which was also likely reflected in another decline in the average loan amount, from $351,000 to $344,000. The overall average credit score in July was 722, with cash-out refinance scores slightly lower at 692, the lowest since Optimal Blue began tracking the score in 2013.
The home loan market continues to react to previous hikes and continued affordability issues, the report said, even as interest rates on 30-year loans edged down slightly in July. Mortgage Professional America reached out to Andy Walden, Black Knight’s VP of Research and Enterprise Strategy, for more information. He agreed that housing affordability was very important when preparing the report: “Housing affordability continues to be the main driver of the decline in the purchase rate, which fell 14.3% from June and is now down 22% from compared to the same period last year,” Walden said. “Buy foreclosures, which excludes the impact of a surge in house prices on volume, fell 25.8% year-on-year and 11% year-on-year, marking the first month in which purchase foreclosures fell below before the pandemic. Although interest rates rose to their maximum in June, housing affordability is still among the lowest levels in 30 years.”
Rising real estate prices have led to a range of non-conforming products around the world, he noted: “Although their share has declined in recent months, we continue to see strong demand (comparatively speaking) for non-conforming mortgages given the increased housing demand. values and attractive rates compared to the corresponding mortgage.’