June Origination Insight Report from Ellie Mae Sees Purchase Percentage Continue to Rise While Closing Rates on Purchases Remain Strong
In June, the 30-year interest rate rose yet again to 4.9 percent, up from 4.84 in May, and a new Origination Insight Report all-time high. The percentage of Adjustable Rate Mortgages (ARMs) rose to 6.9 percent, up from 6.6 percent the month prior.
“While inventories remain tight and interest rates are on the rise, we
are still seeing a very robust purchase market with 71 percent of all
loans representing home purchases and closing rates at 75 percent on
purchase loans,” said
Other statistics of note in June included:
- The percentage of refinances decreased across the board with FHA refinances sinking to 19 percent, conventional refinances down to 31 percent and VA refinances at 23 percent.
- The time to close all loans rose one day to 42 days in June. Time to close refinances held at 37 days, and time to close purchases increased to 44 days, up from 43 the month prior.
- Overall FICO scores increased slightly for the fourth consecutive month to 726, up two points from May. LTV rose to 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 JUNE 2018
|Jun. 2018*||May 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 JUNE 2018
Closed First-Lien Loans
|FICO Score (FICO)||726|
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
Source: Ellie Mae