“The market has been shifting from refis to purchases, but we saw a pick-up in refinancing with lower rates,” said Jonathan Corr, president and CEO of Ellie Mae. “Overall, closing rates rose in July and purchase-loan closing rates increased to 76.2%.”
Refinances made up 35% of all closed loans in July, while purchase loans comprised 65%. This compares to a June ratio of 32% for refinances and 68% for purchase loans.
The ratio in terms of loan type was unchanged month over month. FHA loans
made up 22% of all closed loans. Conventional loans had a 64% share of total activity, while VA
loans comprised 10%.
For July, the closing period for all loans was 43 days, unchanged from the June closing period. Similarly unchanged was the time to close for purchase loans, which was 43 days in July. Refinance loans took longer to close in July, with time to close at 42 days, up from 41 days in June.
The report also showed that all closed loans had an average FICO score of 724 during the month, also unchanged from a month ago. Conventional purchase loans had an average FICO score of 753, down one point from last month. Conventional refinance loans had an average FICO score of 730 during the month, an increase from the 729 average in June.
Ellie Mae said the average rate for the 30-year note fell to 4.25% in July from 4.27% in June. The July level was the lowest since January.
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Refinances saw their share among all closed loans increase in July, reversing a two-month dip, Ellie Mae said in its origination report for the month.