Purchase originations continued to gain ground in April as refinances fell, according to the latest Origination Insight Report from Ellie Mae.
The time to close fell once again, marking the third consecutive month of declines. Time to close all loans fell to 42 days in April, down from 43 days in March and a substantial drop from the beginning of 2017’s 51 days in January.
The chart above shows, despite a drop in February, time to close a mortgage trended upward in 2017. Now, however, that trend is reversing as the number of days continues to drop.
The time it takes to close a refinance dropped to 41 days in April, down from 43 days in March. The time to close a purchase also decreased from 43 days the previous month to 42 days in April.
And while the time it takes to close a refinance came in lower than purchase loans, it is purchase originations that continue to rule the market. In April, refis represented 35% of the market, while purchases made up the other 65%.
“The purchase market continued its rise in April, representing 65% of total closed loans,” said Jonathan Corr, Ellie Mae president and CEO. “We also saw the time to close loans shrink for the third consecutive month to 42 days, a substantial decrease from the 2017 high of 51 days in January.”
“Ellie Mae customers are realizing efficiencies as they embrace technology to improve the home-buying experience,” Corr said.
The 30-year note increased to 4.41% in April, up from 4.39% in March, while the percentage of adjustable rate mortgages increased to the highest point since November 2014 at 5.9%, up from 5.6% in March.