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.