The refinance share of mortgage origination volume increased in October relative to September, despite rising rates, while the the average number of days to close a mortgage loan climbed to its highest level in more than 16 months, according to Ellie Mae’s Origination Insight Report.
The refinance share of volume rose to 32% of all loans, up from 29% in September – this despite the fact that the average rate for a 30-year, fixed-rate mortgage climbed to above 5.01%, up from 4.91% the month prior.
In October 2017, the refinance share was around 39%.
The average time to close a mortgage was 45 days, up from 44 days in September and up from 43 days in October 2017. This could be partly attributable to mortgage lenders cutting back on processing staff.
The average time to close a refinance increased to 43 days while the average time to close a purchase increased to 46 days, according to the report.
The closing rate increased to 72.2%, up from 71.7% in September and up from 70.4% in October 2017.
The average FICO score for all closed loans was 727, flat compared with September but up from 724 in October of last year.
Average LTV remained at 79 for the third consecutive month and DTI increased slightly to 26/39.