According to Ellie Mae’s July Origination Insight Report, the percentage of refinance home loans increased three points to 35% of all closed loans, following two months of refis’ share decreasing.
“The market has been shifting from refis to purchases, but we saw a pick-up in refinancing with lower rates,” says Jonathan Corr, president and CEO of Ellie Mae. “Overall, closing rates rose in July, and purchase loan closing rates increased to 76.2 percent.”
The report also found the following for July:
- On average, the 30-year note rate dropped to 4.25%, down from 4.41% in April. It is now at its lowest level since January 2017.
- While the average FICO score on all closed loans remained steady at 724 in July, average FICO scores for conventional purchase loans decreased one point to 753. The average FICO score for closed conventional refinance loans in July increased to 730, up from 729 in June.
- Closing time for all loans remained flat at 43 days in July. Time to close a refinance increased to 42 days, up from 41 days the month prior. Time to close a purchase loan remained at 43 days in July.