Ellie Mae’s Origination Insight report shows that for July, the share of purchase loans rose to its highest level in the series, while time to close fell to its lowest.
To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the April 2014 applications) to calculate an overall closing rate of 57.7% in July 2014, down from 60.7 % in June 2014. (Click to see the full report).
“The purchase market continued to climb in July with the share of closed purchase loans reaching 67%, the highest percentage since we began tracking this data in August 2011,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “Meanwhile, time to close for all loans dropped to 37 days, the lowest average we’ve seen since we began tracking. This reflects time to close decreasing across the board, with an average of 36 days for conventional loans and 38 days for FHA and VA loans.
“The average 30-year rate for all loans declined once again to its lowest level of 2014: 4.388 % in July, down from 4.421 % in June 2014,” Corr said.
“The average FICO score fell one point to 727 in July, reversing a four-month trend. A further sign of easing: 32% of closed loans had an average FICO score under 700 last month compared to 25% in July 2013,” he added.