The closing time for all loan types ticked up a tad in June to 43 days, up from 42 days the month before, according to Ellie Mae’s June 2017 Origination Insight Report. The time to close a refinance stayed steady at 41 days, while the time to close a purchase loan advanced to 43 days, up from 42 days in May. The average 30-year rate for all loans deflated to 4.27 in June from 4.33 in May.
Regarding closing rates for all loan types, those edged down a hair to 70.3 percent in June from 70.4 in May. Closing rates on refinances cooled slightly to 63.5 percent from May’s 63.8 percent, and closing rates on purchases dropped to 75.1 percent in June from 75.3 percent the prior month.
In terms of average FICO score distribution, 69 percent of all closed loans recorded FICO scores over 700: 724 in June, up from 723 in May. Seventy-two percent of purchase loans inked FICO scores over 700. Additionally, 64 percent of refis had FICO scores exceeding 700.
Wrapping things up, the report then took a look at FICO scores. The average FHA-purchase FICO score held steady at 683 in June, mirroring May’s number. FHA refinance FICO scores tumbled to 647 in June, down from 650 in May. Conventional refinance FICO scores hopped to 729 in June, a tiny lift from 728 in May. Conventional purchase FICO scores grew to 754, up a point from 753 the previous month.
Ellie Mae’s Origination Insight Report provides monthly data and insights from a sampling of closed loan applications that flow through Ellie Mae’s Encompass all-in-one mortgage management software and its Ellie Mae Network. The report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier.