Mortgage Originations Up 42.5% as Credit Scores Improve

Experian’s annual State of Credit report recently found that as the overall national credit improved over the last year, mortgage originations increased 42.5 percent. The new data also links the rise in the national VantageScore credit score, which climbed three points over the last year, with substantially higher mortgage loan originations.

According to the report, broken down by city, Minnesota claimed the top three spots in best average credit scores. Mankato, Rochester and Minneapolis led with scores of 706, 705 and 704 respectively.

Cities with the lowest average credit score included Greenwood, Miss. (612), Albany, Ga. (622), and Riverside, Calif. (642). Overall scores are much closer to pre-recession numbers, and Experian estimates that the general rise in credit scores and positive credit environment will encourage lenders to capitalize on the prime market to foster business growth.