- Business Rules
Lenders Closing More Loans; Plus, New Insight Into Lower Rates
Proof that lenders are closing more loans? Take a look at the closing rate data from Ellie Mae’s June 2014 Origination Insight Report, released today:
That 60.7 percent marks the first time since August 2011, when we began tracking data, that the closing rate for all loans eclipsed 60%. Parsed out, closing rates for refinances and purchases landed at 55.8 percent and 63.6 percent, respectively — both highs for 2014.
See our full June 2014 Report for a closer look at individual FHA, conventional and VA closing rates.
To calculate the closing rates for June, we take a sampling of loan applications initiated 90 days prior (from March 2014, in other words).
With more loans closing, average days to close a loan increased, albeit slightly, to 41 days.
Looking at Lower Interest Rates
While closing rates and time to close increased in June, average 30-year rates for FHA, conventional and VA loans sure didn’t — each fell to their lowest points of the year.
Of course, that kind of drop in 30-year rates will deflect interest away from other loan options. For instance, the percentage of 15-year loans dropped to its lowest point of the year last month.
All in all, an intriguing look into how the mortgage industry charged into summer. The complete Origination Report tells the whole story. Get all the data for June 2014 here.
Have a great rest of the week.
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The Ellie Mae Origination Insight Report draws data and insights from a robust sampling of the significant volume of loan applications that flow through Ellie Mae’s Encompass® mortgage management software and Ellie Mae Network™. Subscribe for free.