Purchasing A Home Just Got Tougher: Average Homebuyer Credit Score Hits All-Time High Of 736

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Buying a home has just become even more difficult. The average credit score for U.S. homebuyers has climbed to an all-time high of 736, marking the highest level in the more than six-year history of the data set, according to the Intercontinental Exchange's October Mortgage Monitor Report.

A report from Realtor.com also found that mortgage credit scores were roughly 20 points above the national average. Why is this happening? In short, affordability. According to Realtor.com, though mortgage rates have come down a bit since their peak, monthly payments are still much higher than they were just a few years ago. This environment has naturally filtered out less-qualified buyers, especially first-time buyers or those with thinner credit histories. In their place, the buyer pool increasingly consists of higher-income and financially stable households, especially those with strong credit and larger down payments.

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On top of that, lenders have also become more cautious and more likely to favor low-risk applicants due to higher delinquency rates. Though delinquencies are below pre-pandemic levels, the ICE reports that the national delinquency rate rose by 16 basis points in August to 3.43% and is up 10 basis points from the same time last year.

What This Means for Future Buyers

The average credit score for approved mortgages hovered in the low 700s for much of the past decade, but 2025's jump to 736 is the steepest increase on record. If you're planning to buy soon but your FICO score is nowhere near that number, here are a few ways to strengthen your credit profile and up your chances of approval.

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Pay down existing debt. Credit utilization accounts for around 30% of your credit score  and refers to the percentage of your available credit that you’re currently using. Try to keep your balances below 30% of your total credit limit, and ideally closer to 10%. Make every payment on time. Payment history makes up the largest portion of your credit score, so set up automatic payments or reminders to avoid missing due dates. Avoid taking on new credit. Opening a new card or loan before applying for a mortgage can cause temporary score drops from hard inquiries and reduce your average account age. So avoid taking on new credit if you're planning to apply for a mortgage soon. Check your credit reports regularly. If you haven't already, head to AnnualCreditReport.com to get a free copy of your reports from Equifax, Experian and TransUnion. Mistakes like incorrect balances and duplicate accounts can negatively affect your FICO score, so make sure to file a dispute if you see any inaccuracies.

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This article Purchasing A Home Just Got Tougher: Average Homebuyer Credit Score Hits All-Time High Of 736 originally appeared on Benzinga.com

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