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Credit quality for purchase mortgage transactions has strengthened steadily over the past three years across all major lending products. According to data from Curinos’ LendersBenchmark, scores of 750+ now represent nearly two-thirds of the transaction volume, up by 5% since 2023 (see chart). And more than 80% of the volume comes from borrowers whose credit scores are above today’s Experian average of 715. For refis and cashouts, the growth has been even more pronounced—15% in the same period, now representing 53% of all volume. More than two-thirds of these borrowers display scores above the Experian average.
Funded Credit Score Distribution by Purpose – Retail
Source: Curinos LendersBenchmark First Mortgage Originations
The trend toward credit quality reflects both heightened competition for prime borrowers and increasingly stringent underwriting standards. Yet it comes at a time when home affordability is at its lowest point in more than four decades. This gap between what’s affordable and access to credit continues to be among the largest barriers to homeownership. At the same time, it could signal a significant opportunity for lenders willing to differentiate themselves to capture an underserved segment eager to purchase their first or next home.
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