The average FICO score on all closed mortgages was 724 in May, which is the fourth consecutive monthly increase and the highest average since August 2015, according to Ellie Mae’s Origination Insight report.
The reported increase is in keeping with other recent reports indicating that mortgage credit has been tightening during the past several months.
The share of applications for refinances fell to 37% of all loans in May, according to Ellie Mae, while the share of applications for purchases increased to 62%. This despite the fact that mortgage rates continued to hold well below 4%.
The average number of days to close increased slightly in May to 45 days, up from 44 days in April. The increase is not substantial enough to indicate any kind of trend; several months ago, the industry was keeping close track of the average number of days to close due to the impact of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule, which took effect Oct. 3, 2015. Although the rule appeared to increase the average number of days to close during the first several months after implementation, the average has since returned to “normal” levels.
The average closing rate increased to 70.6%, up considerably from May 2015, when it was 64.0%, and up from January 2015, when it was 62.4%.
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