Mortgage rates might be exceptionally low these days, but borrowers will need impeccable credit to take advantage of them. Interest rates on home mortgage loans hit new lows a whopping 16 times in 2020. Meanwhile, the median credit score among mortgage borrowers rose to a record 786 during the pandemic, according to the New York Federal Reserve, which closely tracks consumer credit data.
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While mortgage rates are off their record lows this year, it’s a seller’s market in places like Austin, Sacramento, Boise, and even parts of Montana—and inventory is struggling to keep up. “The housing market is entering the busy spring buying season with strong demand," says Joel Kan, President of Economic and Industry Forecasting for the Mortgage Bankers Association