The average FICO score on all closed mortgages increased to 750 in May, up from 749 in April to reach the highest level in more than two years, according to Ellie Mae’s Origination Insight Report.
The average FICO score for a closed FHA refinance in May was 673, up from 667 in April.
The average FICO score for a closed conventional refinance was 762, down from 763 the previous month.
The average FICO score for a closed VA refinance was 729, up from 726.
LTV held at 74 for a second month, and DTI was 23/35.
The closing rate for all loans was 70.0%, down from 76.0% in April.
The refinance share continued to hold at 65%.
The average number of days to close a mortgage crept up slightly to 45 days, up from 42 days in April.
The adjustable-rate mortgage share fell to 3.8%, down from 3.9%.
The average rate for a 30-year conventional loan was 3.44%, down from 3.48% in April.
“Interest rates continued to decline in May, but we are seeing signs of refinances leveling out as the percentage of closed refinances held at 65 percent for the second month,” says Jonathan Corr, president and CEO of Ellie Mae, in a statement.
“As we enter the summer months that typically bring a busier purchase market, we will watch to see if the numbers shift further as homebuyers continue to take advantage of low rates and a loosening of inventory after a tight March and April driven by the shelter in place.”