- Business Rules
The New Highs and Lows of Purchase Share, Rates, and Closing Times
National Mortgage News recently published an article noting that even though applications for refinances have been hovering around 50 percent, a refinance boom, or “boomlet,” is not upon us.
That certainly goes along with what we’re seeing at Ellie Mae. Our just-released Origination Insight Report for July 2014 (get your copy here) shows purchase share rising to 67 percent, the highest since we started tracking data in August 2011.
While purchase share reached an all-time Origination Insight Report high, average 30-year rates and days to close a loan both fell to new lows since our Report’s August 2011 debut. The average 30-year rate on a closed loan in July came in at 4.388...
While average days to close a loan dropped to 37 in July, four days faster than June.
In fact, average days to close a loan fell below 40 across the board: FHA, 38; Conventional, 36; VA, 38.
With the summer home-buying season winding down, it will be interesting to see if rate and days to close averages continue to fall as they have. Stay tuned.
Until next time.
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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™.