Purchase share rises, time to close declines by 2 days
The 30-year note rate decreased in February to 4.86% from 5.01% in January according to the latest report from Ellie Mae.
The mortgage tech firm’s Origination Insight Report shows that the share of all originations that were purchase loans increased to 66% (from 65%) with refinances making up 34%.
The second monthly decrease was coupled with a 2+ day reduction in the time to close across all loan types.
“Purchase percentages have increased following both the holiday season and the 30-year note rate decline,” said Jonathan Corr, president and CEO of Ellie Mae. “We expect this increase to continue as we enter the busier spring buying season.”
The percentage of ARMs slipped to 7.6% in February, down 1 percentage point compared to January.
Overall FICO scores increased two points to 726. LTV increased to 78 and DTI held at 25/39.
MONTHLY ORIGINATION OVERVIEW FOR FEBRUARY 2019
|
|
Feb. 2019* |
Jan. 2019* |
6 Months Ago (Aug. 2018*) |
1 Year Ago (Feb. 2018*) |
|
Closed Loans |
||||
|
Purpose |
||||
|
Refinance |
34% |
35% |
32% |
43% |
|
Purchase |
66% |
65% |
68% |
57% |
|
Type |
||||
|
FHA |
19% |
19% |
20% |
19% |
|
Conventional |
64% |
66% |
66% |
67% |
|
VA |
11% |
11% |
10% |
10% |
|
Days to Close |
||||
|
All |
43 |
45 |
43 |
42 |
|
Refinance |
35 |
38 |
38 |
37 |
|
Purchase |
47 |
49 |
45 |
45 |
|
Percentage of ARM and Fixed Loan Volume |
||||
|
ARM % |
7.6% |
8.6% |
6.6% |
5.5% |
|
30-Year Rate |
||||
|
Average |
4.86% |
5.010% |
4.920% |
4.480% |
*All references to months should be read as month ended. Source: Ellie Mae
