Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

How servicers continue to protect neighborhoods amid COVID

We spoke with MCS CEO Caroline Reaves about self-service technology, the shift to virtual and how servicers can prepare for post-COVID success by improving processes today.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Mortgage

Time to close on mortgages growing amid soaring volume

Ellie Mae's October origination report shows falling mortgage rates

Ellie Mae’s Origination Insight report for October demonstrates some of the side effects of the historically low mortgage rates we’ve seen in 2020: incredibly high volume and an increase in time-to-close.

Across the board, 30-year mortgage rates decreased on average from 3% in September to 2.99% in October, continuing this year’s trend of low rates. The 30-year conventional dropped from 3.02% to 3.01%, and VA fell from 2.78% to 2.75%. FHA loans remained the same, holding steady at 3.01% in October. 

From September to October, the average time to close all loans increased from 51 to 54 days, with the average time to close a refinance increasing from 54 to 57 days and average time for a purchase climbing one day to 48 days. That’s a little more than 6 weeks for people trying to move into a house.

Time to close has been creeping up since the lows seen in March when shut-downs started happening. Refis now take 22 days longer in October than they did back March.

The number of closed loans increased 7.1% over September, per Ellie Mae. Seasonally, October over September for 2019, 2018, 2017 were up 4.8%, up 9.9%,  and up 5.6% respectively.

The number of conventional loans increased in October to 82% – up from 80% in September. Overall loan applications are down 9.3% from September.  FHA loans held steady at 10% between the two months, while VA loan numbers dropped from 6% to 5%. 

Numbers throughout the industry are favorable for buyers, though, when compared to the months before the COVID-19 pandemic forced an economic shutdown. In February, 30-year rates sat at an average of 3.86%.

The average FICO score on all closed loans remained at 753 in October, unchanged from the month prior. LTV stayed at 73 and DTI decreased to 23/35.

FHA refinance FICO scores held at 679 for the second consecutive month, and conventional refinance FICO scores decreased one point to 766 in October. VA refinance FICO scores decreased to 736 in October, down from 738 in September. 

Leave a comment

Most Popular Articles

CFPB Director Kathy Kraninger resigns at Biden’s request

Consumer Financial Protection Bureau Director Kathy Kraninger announced Wednesday she is resigning from her post at the request of President Joe Biden’s administration.

Jan 20, 2021 By

Latest Articles

HousingWire Lead Analyst featured on Bloomberg Radio

Logan Mohtashami doesn’t think rising home prices will lead to a market crash. Listen to his interview on Bloomberg Radio hosted by Paul Sweeney and Vonnie Quinn.

Jan 23, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please