The refinance share of total mortgage activity increased to 43% in August – up considerably from 37% in July, according to Ellie Mae’s Origination Insight Report.
Meanwhile, the purchase share fell to 56% from 62% in July.
Changing the balance were super-low interest rates, which have been hovering near historical lows since the start of this year. The average rate for a 30-year fixed mortgage was 3.77% in August – down from 3.87 in July, according to Ellie Mae’s data.
Some analysts have expressed surprise that the refinance share of total mortgage volume is not higher, considering how low rates have been.
The average number of days to close a mortgage loan (for all loans) remained at 46, which is where it was in July and June.
The closing rate in August was about 72.3%, an increase from 71.6% in July, according to Ellie Mae’s estimates.
The average FICO score on all closed loans was 731, up from 727 to reach the highest level since March 2015.
About 13% of closed purchase loans had FICO scores over 800, while about 58% of closed loans had FICO scores of 700-799.