Mortgage lenders, expect your closing rate to decline over the next year

Capital Economics | April 01, 2019

The closing rate for purchase mortgages recently hit a record high, but analysts at Capital Economics warn lenders that this trend is unlikely to continue. Why? Blame a slowing economy. Most often, mortgage applications are rejected because the borrower’s credit score is too low, their debt-to-income ratio is too high, or the lender does not think the house supports the purchase price. Capital Economics said the high closing rate as of late is likely related to the fact that borrower credit scores have improved and DTIs have lowered, which would make sense given the strong economy and labor market.

Spotlight

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the expected completion of the asset sale transactions, the use of proceeds, pro forma operational and financial data and the anticipated closing time frame.

Spotlight

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the expected completion of the asset sale transactions, the use of proceeds, pro forma operational and financial data and the anticipated closing time frame.

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