According to the April Origination Insight Report from Ellie Mae®, a leading cloud-based platform provider for the mortgage finance industry, the 30-year note rate dropped for the fourth straight month to 4.61%, down from 4.77% in March and the high of 5.01% in January. Additionally, the time to close all loans dropped two days to 40 days, down from 42 in March. Time to close a refinance dropped one day to 33 days and time to close a purchase dropped two days to 43 days.
“We are seeing closing times drop across the board as our lenders leverage technology for a more efficient and streamlined loan origination process,” said Jonathan Corr, president and CEO of Ellie Mae. “And as the 30-year note rate continues to decline and closing rates remain high, we expect to see an active spring home buying cycle.”
Other statistics of note in April included:
- The percentage of refinances held at 35% while purchases made up 65% of total closed loans
- The percentage of Adjustable Rate Mortgages (ARMs)decreased to 6.8%, down from 7.4% in March
- Closing rates dropped slightly to 74.8%, down from 75.3% in March.
The Origination Insight Report mines data from a robust sampling of approximately 80% 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.
|MONTHLY ORIGINATION OVERVIEW FOR APRIL 2019|
|Apr. 2019*||Mar. 2019*||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 APRIL 2019|
|Closed First-Lien Loans
|FICO Score (FICO)||728|