Ellie Mae: ARMs at High Point

Ellie Mae, Pleasanton, Calif., reported the percentage of adjustable-rate mortgages reached 8.9 percent in November, the highest percentage since Ellie Mae began tracking data in 2011.

The company’s monthly Origination Insight Report said the increase in ARMs is directly correlated to the 30-year rate, which rose to 5.15 in November, up from 5.01 the month prior. For FHAs, the 30-year rate increased from 5.05 in October to 5.19 in November. Conventional rates increased from 5.03 in October to 5.17 in November, while VA rates rose from 4.83 to 4.99.

“As interest rates continue to rise, we are seeing the percentage of adjustable-rate mortgages rise in lockstep,” said Jonathan Corr, president and CEO of Ellie Mae. “As expected, we are also continuing to see the percentage of refinances remain low–30 percent in Novembe–due to higher interest rates.”

Other report data:

–Time to close all loans increased to 46 days in November, up from 45 days in October. Time to close a purchase loan increased to 48 days, up from 46 days in October, while time to close a refinance remained at 43 days for the second consecutive month.

–The percentage of purchase loans rose to 70 percent of total loans in November, up from 68 percent the month prior.

–Overall FICO scores remained steady at 727 in November for the third month. LTV held at 79 for the fourth month, and DTI held at 26/39 for the second month.