Ellie Mae: Closing Times Decrease as Purchases Tick Up

March 22, 2019

Ellie Mae, Pleasanton, Calif., said as mortgage rates continued to fall in February, time to close loans fell across all loan types by more than two days.

The company’s monthly Origination Insight Report noted the 30-year note rate fell for the second straight month in February to 4.86 percent, down from 5.01 percent in January.

The Mortgage Bankers Association this week reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.55 percent from 4.64 percent. Yesterday, Freddie Mac reported the 30-year fixed-rate average slipped to 4.28 percent with an average 0.4 point, compared to 4.31 percent a week ago and 4.45 percent a year ago.

Other report data:

–The percentage of purchases ticked back up to 66 percent, up from 65 percent the month prior. Refinances made up 34 percent of all closed loans.

–The percentage of adjustable-rate mortgages decreased to 7.6 percent in February, down from 8.6 percent in January.

–Overall FICO scores increased by two points to 726. LTV increased to 78 and DTI held at 25/39.

–Days to close fell to 43 February, down from 45 in January but one day longer than a year ago.

“Purchase percentages have increased following both the holiday season and the 30-year note rate decline,” said Jonathan Corr, president and CEO of Ellie Mae. “We expect this increase to continue as we enter the busier spring buying season.”