Ellie Mae said the increase in ARMs is directly correlated to the 30-year rate
Adjustable-rate mortgages (ARMs) reached their highest percentage in Ellie Mae’s Origination Insight Report since the company began tracking data in 2011 after reaching 8.9% in November.
Ellie Mae said the increase in ARMs is directly correlated to the 30-year rate, which rose to 5.15% in November, up from 5.01% the month prior.
“As interest rates continue to rise, we are seeing the percentage of adjustable-rate mortgages rise in lockstep, and this month they’ve risen to the highest percentage we’ve seen since we began tracking data,” Ellie Mae President and CEO Jonathan Corr said. “As expected, we are also continuing to see the percentage of refinances remain low—30% in November—due to higher interest rates.”
Ellie Mae noted that the 30-year rate for FHAs increased from 5.05% in October to 5.19% in November. Conventional rates increased from 5.03% in October to 5.17% in November, and VA rates rose from 4.83% to 4.99%.
Additionally, the report found that the time to close all loans increased to 46 days in November, up from 45 days in October. Time to close a purchase loan increased to 48 days, up from 46 days in October, while time to close a refinance remained at 43 days for the second consecutive month.
The percentage of purchase loans rose to 70% of total loans in November, up from 68% the month prior. Overall FICO scores remained steady at 727 in November for the third month.
