Falling mortgage rates boosted the refinance share of mortgage origination volume to 38% in July, up significantly from 31% in June, according to Ellie Mae’s Origination Insight Report.
That’s the highest it’s been since March 2018, according to the monthly report.
The average time to close a mortgage in July held at 42 days – flat compared with both June and May.
The average time to close a purchase loan decreased to 43 days, down from 45 days in June.
The average time to close a refinance increased to 40 days, up from 38 days in June.
The adjustable-rate mortgage (ARM) share of mortgage activity was 5.7% in July, according to the report, which relies on data from Ellie Mae’s Encompass loan origination platform. That’s down from 6.3% in June.
The average rate for a 30-year fixed-rate mortgage continued to drop in July, falling to an average of 4.18%, down from an average of 4.40% in June.
The average rate on a 30-year loan backed by the FHA decreased to 4.27% in July, down from 4.49% in June, while the average rate on conventional loan decreased to 4.20%, down from 4.41%.
The average FICO score for all closed loans in July was 731, flat compared with June but up from 725 in July 2018.
Average LTV decreased to 79 and DTI decreased to 24/37.