In September, we saw existing home sales rise for the first time in three months. Then, in October, the market got even hotter with existing home sales increasing to their strongest pace since earlier this summer. However, supply and demand weren’t quite in sync—there were fewer closings on an annual basis for the second straight month due to supply shortages.
With so many motivated buyers looking to purchase homes—and the amount of homes in short supply—having a solid FICO score is now more important than ever. In October 2017, the average FICO score on all closed loans was 724. To put that into perspective, here’s how these credit scores are usually ranked:
• Exceptional: 800 and higher
• Very good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 and lower
71% of all purchase loans had FICO scores over 700, and 67% of refinances had FICO scores over 700. How does your score compare?
Though first-time homebuyers made up 32% of October sales, refinances rose an additional percentage point to 39% of total loans in October. Ellie Mae, a cloud-based platform provider for the mortgage finance industry, says it is continuing to see borrowers take advantage of the lower interest rates and that the company also observed October increases across all loan types—including FHA refinances, and VA refinances.