As mortgage interest rates hit a new 2017 low, we now see mortgage purchase applications rising to its highest level since May 2010.
This new level is in spite of mortgage originations for borrowers with credit scores under 620 playing a lesser than during the financial crisis. Although mortgage originations for borrowers with credit scores under 620 are at their highest level since March 2010. So both mortgage purchase applications (SA) and under 620 credit score mortgage borrowers are at their highest levels since 2010.
With the worst wage recovery after a recession in modern history, expanding the “credit envelope” is about the only way to expand mortgage lending.
In other words, mortgage credit for borrowers under 620 FICO score is expanding at the fastest pace since Dodd-Frank and The Consumer Financial Protection Bureau were created in 2010.
Elizabeth Warren, architect of the Consumer Financial Protection Bureau.