July Origination Insight Report From Ellie Mae Sees Purchase Percentage and Closing Rates Hold Steady
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
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*||
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 JULY 2018
Closed First-Lien Loans
|FICO Score (FICO)||725|
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 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
About Ellie Mae