October Origination Insight Report From Ellie Mae Sees Closing Rates Rise to Highest Percentage in 2018
In October, the average 30-year interest rate for all loans increased to 5.01 percent, also the highest in 2018 and up from 4.91 percent in September. The percentage of Adjustable Rate Mortgages (ARMs) increased to 8.2 percent in October, up from 7.2 percent in September.
“As interest rates continue to rise, the percentage of Adjustable Rate
Mortgages is increasing as homebuyers are looking to take advantage of
the best rates from their lenders,” said
Other statistics of note in October included:
- The time to close all loans increased to 45 days in October, up from 44 days in September. Time to close a purchase loan increased to 46 days, up from 45 days in September, while time to close a refinance increased to 43 days in October, up from 42 the month prior.
- The percentage of purchase loans dropped to 68 percent of total loans from 71 percent the month prior. Refinances represented 32 percent of total loans in October.
- Overall FICO scores remained steady at 727 in October for the second month. LTV held at 79 for the third month while DTI increased to 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 OCTOBER 2018
|Oct. 2018*||Sept. 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 OCTOBER 2018
Closed First-Lien Loans
|FICO Score (FICO)||727|
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
Ellie Mae, Inc.