Refinance Share of Mortgage Origination Volume Increased in August

The refinance share of mortgage volume increased to 32% in August, up from 29% in July, as rates stabilized, according to Ellie Mae’s Origination Insight report.

“The rise in interest rates has slowed since June, and we are seeing the percentage of refinances increase month-over-month since May,” says Jonathan Corr, president and CEO of the mortgage origination software firm, in a statement. “This may reflect consumers taking an opportunity to refinance with the corresponding increase in equity.”

Although mortgage rates increased slightly in August compared with July – the average rate for a 30-year was 4.92%, up from 4.91% – they have been relatively flat since June, when the average rate for a 30-year was around 4.90%.

Closing rates for all loans in August increased to the highest percentage this year at 71.1%, up from 70.9% the previous month. Closing rates on purchase loans increased to 75.9%, up from 75.0%, while closing rates on refinances dropped slightly to 63.5%, down from 63.7%.

The average number of days to close a mortgage was flat at 43 days. That’s where it has averaged for the past 18 months.

The average number of days to close a refinance in August was 38 days, down from 41 days in July. The average number of days to close a purchase loan was 45 days, up from 44 days.

The average FICO score for all closed loans in August was 724, down from 725 in July.

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