Refinance Share of Originations Edges Up Slightly


According to the latest Origination Insight Report from Ellie Mae, refinances represented 56 percent of closed loans in August, up from 54 percent in July.

This comes as the 30-year rate on all loans continued to fall, to 3.09 percent, now the lowest rate since Ellie Mae began tracking this data and down from 3.24 percent the month prior.

The 30-year note rate VA loans fell below 3 percent, to 2.86 percent in August, down from 3.02 percent in July. The 30-year note rate on conventional loans fell to 3.12 percent in August, down from 3.26 percent in July. Similarly, the 30-year rate on FHA loans fell to 3.10 percent in August, down from 3.26 percent in July.

The time to close all loans increased to 49 days in August, up from 47 days the month prior. Time to close for purchase loans increased to 45 days in August, up from 44 days in July and time to close for refinances increased to 51 days in August, up from 50 the month prior.

FICO scores continued to increase to 2020 highs, rising to 752 for all loans, up from 750 the month prior.

Closing rates increased slightly to 77.2 in August, up from 77.1 percent in July.

“In August of 2019, we saw 30-year rates just over four percent across all loans, while this month we’re seeing average rates almost one percentage point lower,” says Joe Tyrrell, chief operating officer at Ellie Mae. “Not only does this enable home buyers to get more home for their dollar, it allows new homebuyers who might be waiting for a good deal to enter the market.”

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