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Ellie Mae: 30-Year Note Rate Continues to Decline; Time to Close Drops

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.

    Apr. 2019*   Mar. 2019*   6 Months Ago

(Oct. 2018*)

  1 Year Ago

(Apr. 2018*)

Closed Loans
Refinance   35%   35%   32%   34%
Purchase   65%   65%   68%   66%
FHA   20%   20%   19%   20%
Conventional   66%   64%   65%   66%
VA   10%   11%   10%   9%
Days to Close
All   40   42   45   41
Refinance   33   34   43   37
Purchase   43   45   46   42
Percentage of ARM and Fixed Loan Volume
ARM %   6.8%   7.4%   8.2%   6.6%
30-Year Rate
Average   4.61%   4.77%   5.01%   4.79%
*All references to months should be read as month ended.
    Closed First-Lien Loans 
(All Types)
FICO Score (FICO)   728
Loan-to-Value (LTV)   79
Debt-to-Income (DTI)   25/38

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