Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Mortgage

Average FICO scores rise across the board, according to Ellie Mae

Average FICO scores are rising

Ellie Mae‘s Origination Insight Report for June detailed the decline in mortgage rates for the sixth consecutive month, and noted some interesting trends in closing rates and FICO scores.

According to the report, the average 30-year rate fell from 3.43% in May to to 3.4% percent in June.

“Interest rates decreased for the sixth consecutive month and we’re seeing a rebound in the purchase market which now represents 42% of all closed loans, a 7% increase from May,” said Jonathan Corr, President and CEO of Ellie Mae.

During the month, the rate for 30-year conventional loans fell to 3.42%, declining from 3.4% in May. The rate on VA loans fell to 3.2% from 3.24% and the 30-year rate on FHA loans came in at 3.41%, down from 3.45% the month prior.

Notably, closing rates for all loans decreased to 73.4% in June, down from 76% in May, and the average time to close increased to 47 days in June, up from 45 days in May.

Ellie Mae indicates closing rates on refinances decreased to 73.2% in June, down from 75.9% in May, and closing rates on purchase loans decreased from 76.4% in May to 74.2%  in June.

“Homebuyers are taking advantage of these historically low rates to both buy and refinance but it does appear that lenders are looking for borrowers with better credit across all mortgage products as FICO scores have continued to increase across the board since March,” Corr said.

According to Ellie Mae, the average FICO scores on all closed loans increased to 751 in June, up from 750 in May, while FICO scores increased month-over-month for both purchase and refinances across conventional, FHA and VA loans.

Leave a comment

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please