Updated

Updated · WTVB · Jul 21

Equifax Sees 2026 Revenue at $6.71 Billion-$6.78 Billion as 6.6% Mortgages Squeeze Growth

Updated

Updated · WTVB · Jul 21

Equifax Sees 2026 Revenue at $6.71 Billion-$6.78 Billion as 6.6% Mortgages Squeeze Growth

Q: Can a new credit score system overcome 6.6% mortgage rates to unlock the housing market for new buyers?

No. A new credit score system can widen the door for some buyers, but it cannot offset the affordability hit from mortgage rates near 6.6%. VantageScore 4.0, now accepted by Fannie Mae, Freddie Mac and the FHA, does address a real barrier: credit access. By using trended and alternative data such as rent, utility and telecom payments, it can score millions of consumers who were previously hard to assess under older models. Industry estimates suggest roughly 33 million more adults become scoreable, with nearly 5 million more potentially mortgage-eligible. For borrowers on the margin, that can mean moving from denial to approval, or getting somewhat better pricing and mortgage insurance terms. But the bigger obstacle is still monthly payment cost. At current rates, borrowing is far more expensive than in the prior decade, when 30-year mortgages averaged closer to 4.3%. Economists do not expect rates to fall below 6% soon, and home prices remain high even as some markets soften. That means many newly eligible borrowers may still fail affordability tests or decide the payment is too steep. The housing market is also constrained by low supply, as many existing owners are reluctant to sell and give up older low-rate mortgages. That keeps prices elevated and limits the effect of broader credit access. So the new scoring model can help specific first-time and thin-file borrowers enter the market. It is a meaningful access reform, not a cure for a rate-driven housing slowdown.

3 articles · Updated · WTVB · Jul 21

Equifax forecast 2026 revenue of $6.71 billion to $6.78 billion, a range that brackets and largely trails analysts’ $6.76 billion estimate.
Mortgage-market weakness drove the softer outlook, with elevated rates and Fed hawkishness tied to Iran-war inflation keeping U.S. housing demand subdued.
The 30-year mortgage rate has hovered near 6.6% in recent months, well above the previous decade’s 4.3% average, pressuring a core market for Equifax’s credit business.
Adjusted second-quarter profit rose to $2.25 per share from $2.00 a year earlier, but the outlook overshadowed the beat and sent shares down 11% premarket; the stock had already fallen 17% this year.
Equifax is still leaning on strategic moves beyond mortgages, including its $750 million acquisition of Mexico’s Círculo de Crédito and exposure to VantageScore 4.0 adoption by Fannie Mae and Freddie Mac.