Chart of the Week!

In 2020, US mortgage originations approached the 2003 peak as mortgage rates fell to record low levels. While the volume of originations may be similar, the composition of borrowers is healthier this time. The credit scores of 71% of borrowers in Q3 2020 was above 760 (vs. 31% in 2003). In our view, this reflects a strong housing market and a potential source of US economic stability.