April Origination Insight Report From Ellie Mae Sees Purchase Percentage of Closed Loans Rise to Highest Levels since 2014
In April, the 30-year interest rates rose to the highest point since
Ellie Mae began tracking data in 2011 at 4.79 percent, up from 4.69
percent in March and the 2018 low of 4.33 percent in January. The
percentage of Adjustable Rate Mortgages (ARMs) increased from 6.3
percent in March to 6.6 percent in April, the highest since
“This month we saw interest rates increase to the highest percentage
point since Ellie Mae began reporting data in 2011, and with that, the
percentage of purchases increased four percentage points to 66 percent
of total closed loans,” said
Other statistics of note in April included:
- The percentage of refinances once again decreased across the board with FHA refinances dropping from 23 percent in March to 22 percent in April. Conventional refinances dropped from 43 percent in March to 38 percent in April. VA Refinances dropped from 28 percent in March to 27 percent in April.
- The time to close all loans held steady across the board with time to close all loans at 41 days for the second month. Time to close a conventional purchase dropped one day to 41 days in April.
- Overall FICO scores increased slightly for the third consecutive month to 723. LTV remained at 79 and DTI remained at 26/39.
The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.
In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.
MONTHLY ORIGINATION OVERVIEW FOR APRIL 2018
|Apr. 2018*||Mar. 2018*||
6 Months Ago
1 Year Ago
|Days to Close|
|Percentage of ARM and Fixed Loan Volume|
*All references to months should be read as month ended.
PROFILES OF CLOSED LOANS FOR APRIL 2018
|Closed First-Lien Loans
|FICO Score (FICO)||723|
More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/.
To get a meaningful view of lender pull-through, Ellie Mae reviewed a
sampling of loan applications initiated 90 days prior—or the
About the Ellie Mae Origination Insight Report
The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification.
The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform.
News organizations have the right to reuse this data, provided that
About Ellie Mae