Refi Percentage Increases as Rates Dip

The percentage of refinance home loans increased three points to 35 percent of all closed mortgages–reversing a two-month dip–reported Ellie Mae, Pleasanton, Calif.

“The market has been shifting from refis to purchases, but we saw a pick-up in refinancing with lower rates,” said Ellie Mae President and CEO Jonathan Corr. “Overall, closing rates rose in July and purchase loan closing rates increased to 76.2 percent.”

Corr also noted that on average, the 30-year note rate dropped to 4.25 percent, down from 4.41 percent in April and the lowest level since January.

While the average FICO score on all closed loans remained steady at 724 in July, average FICO scores for conventional purchase loans decreased one point to 753, Ellie Mae reported. The average FICO score for closed conventional refinance loans in July increased to 730, up from 729 in June.

Corr noted closing time for all loans remained flat at 43 days in July. The time to close a refinance increased to 42 days, up from 41 days in June. The time to close a purchase loan remained at 43 days in July.

The Ellie Mae Origination Insight Report samples 80 percent of mortgage applications initiated on the firm’s Encompass Customer relationship management software to reflect the underwriting standards employed by lenders across the country.