“As the summer season drew to a close, refinances held steady at 35% of all closed loans coupled with a slight increase in interest rates to 4.27%, up from the 2017 low of 4.25% in July,” said Jonathan Corr, president and CEO of Ellie Mae.
The share ratio by loan type was also unchanged month over month. For the third straight month, conventional loans made up 64% of all closed loans. FHA
loans represented 22%, while VA
loans had a 10% share of closed loans.
Also remaining unchanged during the month was the average FICO score of 724 for all closed loans. However, average FICO scores for each loan type changed during the period. FHA refinances had average FICO scores of 649, up three points from July. Conventional purchase loans saw average scores fall to 752, while VA refinances posted a two-point increase to 702 in August from 700 last month.
Closing times across all closed loans decreased to 42 days in August from 43 days in July. The closing time for purchase loans remained steady at 43 days, while refinances posted 41 days to close during the month, down from 42 days in July.
Overall closing rates in August rose to their highest level since January to 71.7%, compared with the 70.6% rate in July.
Mortgage apps slide, but refi share keeps growing
Refinance loans see gains in share of total activity
The share of refinances out of total mortgage activity remained unchanged in August in spite of an increase in interest rates, according to Ellie Mae’s Origination Insight Report for the month.