The refinance share of mortgage origination volume in June fell to 29%, down from 30% in May and down from 32% in June 2017, according to Ellie Mae’s Origination Insights Report.
It was the lowest share since the firm started tracking the data in 2011. The report is based on data pulled from about 80% of the mortgage transactions completed on Ellie Mae’s Encompass loan origination platform.
Helping to drive the decrease in refinance share was rising mortgage interest rates. The average rate for a 30-year loan (all types) was 4.90%, up from 4.84% in May.
The average time to close a mortgage loan increased to 42 days, up from 41 days in May.
The average time to close a purchase loan increased to 44 days, up from 43 days, while average time to close a refinance held at 37 days for the fifth consecutive month.
Closing rates for all loans increased in June to 70.5%, up from 70.2% the month prior.
Closing rates for refinances fell slightly to 63.3%, down from 65.0% in May.
Closing rates on purchases held steady at 75.0% for the second consecutive month.
The average FICO score for all closed loans (all types) was 726, up from 724 in May.
