Average FICO Score on Closed Mortgages Fell in July

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The average FICO score for all closed loans was 740 in July – down from 743 the month prior and down from 750 a year ago, according to ICE Mortgage Technologies’ Origination Insight Report.

That’s the lowest average FICO score in more than 16 months and an indication of loosening credit, which tightened significantly at the start of the pandemic.

The refinance share of mortgage activity increased to 49% of all loans in July, up from 48% in June but down from 55% in July 2020, according to ICE Mortgage Technologies’ Origination Insight Report.

The average rate for a 30-year mortgage increased to 3.25% in July, up from 3.22% in June.

The average 30-year rate on conventional loans was 3.27%, up from 3.25% the month prior. 

The average rate for 30-year FHA loans was 3.27%, up from 3.23% in June.

Similarly, the average rate for a 30-year VA loan increased to 2.94%, up from 2.92%.

The average time to close decreased to 48 days, down from 49 days in June but up from 47 days in July 2020.

The average time to close a refinance decreased to 47 days, down from 48 days the month prior. The average time to close a purchase was 48 days, down from 51 the month prior.

The adjustable-rate mortgage share of activity increased to 4.5%, up from 4% the month prior and up from 3% a year earlier.

Closing rates for all loans increased to 77.2% in July, up from 75.3% in June. Closing rates on refinances increased to 76.1% in July, up from 74.6% in June. Closing rates on purchase loans rose to 78.7% in July, an increase from June’s 76.3%.

LTV decreased to 73 in July, down from 74 in June, while DTI held steady for three consecutive months at 24/36.

The report is based on data shared from the Encompass origination platform.

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