LendingTree Borrower Health Report: Rising Home Prices Cause Borrower Health to Fall Slightly in Q3
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During the third quarter, the average loan-to-value [LTV] ratio of potential borrowers increased from 88.4% to 89.8%, suggesting that rising home prices placed more financial pressure on potential borrowers. Because LTVs are a key qualifying factor, the increase in LTVs likely resulted in a decline of the Borrower Health Score, which fell 1.56 points to 79.94 in the third quarter. Additionally, the average credit score of prospective borrowers fell four points quarter-over-quarter from 640 to 636
Although borrowers may not be in top condition, the Borrower Health Score is 7.28 points above where it was just a year earlier. This year-over-year improvement implies that mortgage-seekers are in relatively good health and that there is broader trend of improving borrower qualification levels.
State |
LTV Ratio |
Avg. Credit Score |
HI |
89.66% |
689 |
DC |
86.45% |
679 |
NJ |
88.48% |
677 |
CA |
85.60% |
676 |
MA |
85.60% |
679 |
"Because home prices have been steadily increasing, this minor slip in the Borrower Health Score isn't necessarily unsettling," said
For a full ranking and the infograph in PDF versions, please visit the following links:
Infographic: http://marketing.lendingtree.com/pr/Borrower_Health_Report_Infographic_Q3_2013.pdf
Full Data: http://marketing.lendingtree.com/pr/Borrower_Health_Q3_2013.pdf
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