According to Ellie Mae’s Origination Insight report, loans that closed in November had an average rating rate of 2.97 percent. The 30-year note rate for FHA and Conventional loans fell below three percent for the first time, with an average of 2.99 percent. The rating rate on VA loans continued to decline, reaching 2.72%.
Refinances accounted for 61% of total loans closed over the month, 1 point more than in October and 12 points more than in November 2019. The distribution of loans between lenders remained relatively stable, with conventional loans representing 82% of total arrangements and FHA 10% , both unchanged from the previous month. The share of VA loans increased from 5% to 6%.
The closing time for all loans has increased at 55 days against 54 days in October. The closing time for purchase loans was reduced from 48 days to 49 days in November and the refinancing time frame increased from 2 days to 59 days. The average FICO score for all loans decreased slightly to 752.
Closing rates fell to 75.6 in November from 76.7 in October. Ellie Mae calculates the close rates from a review of a sample of applications filed 90 days earlier, in this case the August 2020 applications.
“As we approach the end of 2020, we are still seeing a robust appetite for refinancing, representing the lion’s share of loans closed during the month. Interest rates continue to fall below 3%, boosting demand for purchases and refinances as homebuyers expand their spending potential or take the opportunity to reduce their monthly mortgage payments, ” said Joe Tyrrell, president of ICE Mortgage Technology. “With many pieces. As the country enters the next phase of pandemic-related shutdowns, lenders will need to leverage technology to enable virtual capabilities for their employees and homebuyers and provide automated workflows to streamline processes and improve engagement with interested parties. “
The Origination Insight report leverages data from an approximately 80% sample of all mortgage applications that have been initiated on its mortgage management system. Ellie Mae says her report is a good indicator of the underwriting standards used by lenders across the country.