Mortgage Watch

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MILLENNIALS LEAD RECORD FICO SCORE BOOM

At a certain point you become an adult and things like credit scores matter. Well, 2019 was the year FICO scores hit a record high, mostly driven by millennials who are getting serious about their financial profiles.

According to HouseWire’s Kathleen Howley, “The average U.S. FICO score hit a record high of 703 in 2019, driven by Americans in their 30s, as a strong labor market helped people to pay their bills on time.” She goes on to add that the share of Americans with FICO scores above 700 rose to 59%, the largest ever, Experian said in a report recently.

Experian also reports that millennials who turn ages 24 to 39 in 2020 are now outnumbering Baby Boomers while hitting their “credit stride.” “Their economic emergence is reflected by a 25-point increase in their average FICO score since 2012 – the biggest increase of any generation.”

Approximately 1.2% of Americans had a perfect FICO score of 850, according to Experian, while the number of people with an 850 score has grown 63% in 10 years. Shannon Lois, one of Experian’s analysts, credits this to consumers being more educated about their credit. Of course, a strong labor market doesn’t hurt, hitting a 50-year low of 3.5% three times since September.

Wage growth, however, remains stagnant. The median household income was $65,666 in December, according to a Feb. 6 report by Sentier Research. Adjusted for inflation, that’s a gain of just 1.1% from a year earlier, the report said.

Source: Experian | TBWS

RATES CURRENTLY TRENDING: LOWER

Mortgage rates are moving lower this morning. Last week the MBS market improved by +29bps. This was enough to move rates lower last week. We saw extreme rate volatility at the end of the week.

THIS WEEK’S POTENTIAL VOLATILITY: HIGH

Rates and stocks are plummeting on extreme volatility so far today. The market is hyper-focused on the coronavirus and the surprise move in oil. We expect the rate and overall market volatility to continue throughout the week, as has been the case for a couple of weeks.

About the Author
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The real estate industry continues to evolve, and I pride myself on being on the cutting edge, finding new ways to work with clients to achieve their real estate goals.

My real estate experience coupled with insight of industry trends ensures that I stay one step ahead of other realtors. I enjoy making sense of the complex real estate market in Southern California, and look forward to teaming with you and exceeding your expectations.

My passion for winning stretches back to my time playing professional baseball, and I know that hard work pays off-let me hit a home run for you! I’m committed to delivering your dream home or selling your current property at a winning price.

Affiliations: California association of Realtors, National Association of Realtors, Relocation Specialists.