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July Origination Insight Report From Ellie Mae Sees Purchase Percentage and Closing Rates Hold Steady

August 15, 2018 at 9:00 AM EDT

PLEASANTON, Calif.--(BUSINESS WIRE)--Aug. 15, 2018-- The percentage of closed purchase loans held steady at 71 percent of total closed loans in July for the second consecutive month according to the most recent Origination Insight Report from Ellie Mae® (NYSE:ELLI), the leading cloud-based platform provider for the mortgage finance industry. This two-month high is the new highest percentage of purchase loans recorded since Ellie Mae began tracking data in 2011.

In July, the average 30-year interest rate for all loans rose slightly to 4.91 percent, up from 4.90 percent in June and a new Origination Insight Report high. The percentage of Adjustable Rate Mortgages (ARMs) dropped to 6.6 percent, down from 6.9 percent the month prior.

“The purchase market remained solid in July and as we see inventories rise, we might begin to see a transition to a buyer’s market,” said Jonathan Corr, president and CEO of Ellie Mae. “The summer home buying season is still in full swing and while interest rates have risen, we expect to see a continued increase in purchase percentages.”

Other statistics of note in July included:

  • The percentage of refinances remained relatively steady with VA refinances rising to 25 percent, up from 23 percent the month prior. Conventional refinances held at 31 percent and FHA refinances held at 19 percent.
  • The time to close all loans rose one day to 43 days in July. Time to close refinances increased to 41 days, up from 37 days in June, and time to close purchases held at 44 days for the second month.
  • Overall FICO scores decreased by one point in July to 725 while LTV remained at 80 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 JULY 2018

    Jul. 2018*   June 2018*  

6 Months
Ago
(Jan. 2018*)

 

1 Year Ago
(Jul. 2017*)

Closed Loans
Purpose
Refinance   29%   29%   45%   35%
Purchase   71%   71%   55%   65%
Type
FHA   20%   20%   19%   22%
Conventional   66%   66%   67%   64%
VA   10%   10%   10%   10%
Days to Close
All   43   42   44   43
Refinance   41   37   40   42
Purchase   44   44   47   43
Percentage of ARM and Fixed Loan Volume
ARM %   6.6%   6.9%   5.5%   5.7%
30-Year Rate
Average   4.910%   4.900%   4.330%   4.250%

*All references to months should be read as month ended.

 

PROFILES OF CLOSED LOANS FOR JULY 2018

   

Closed First-Lien Loans
(All Types)

FICO Score (FICO)   725
Loan-to-Value (LTV)   80
Debt-to-Income (DTI)   26/39
 

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 April 2018 applications—to calculate an overall closing rate of 70.9 percent in July 2018 (see full report).

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 nonqualification.

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 Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, lower origination costs, and reduce the time to close, all while ensuring the highest levels of compliance, quality, and efficiency. Visit EllieMae.com or call (877) 355-4362 to learn more.

© 2018 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®, Velocify®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Source: Ellie Mae, Inc.

Ellie Mae, Inc.
Erica Harvill, 925-227-5913
Erica.Harvill@elliemae.com
or
Allison+Partners
Caitlin Coffee, 312-635-8204
EllieMae@allisonpr.com