Higher index values indicate a higher level of credit risk for new originations and lower index values indicate less credit risk present. Compared with other loans made since mid-2009, the starting point of the current economic expansion, Q3 2016 loans are among the loans originated with the lowest credit risk based on six important credit-risk attributes.
The average credit score for homebuyers increased 5 points between the third quarter of 2015 and the third quarter of 2016, rising from 734 to 739.
The average DTI for homebuyers fell slightly comparing the third quarters of 2015 and 2016, falling from 35.7 percent to 35.4 percent.
The LTV for homebuyers decreased nearly 1 percentage point between the third quarter of 2015 and the third quarter of 2016, declining from 86.8 percent to 85.8 percent.