Ellie Mae’s latest Origination Insight Report found that purchases increased to 62% of all closed loans last month, up from 59% in April. Refinances represented 37% of closed loans in May, dropping from April’s level of 40%.
The average time to close all loans, meanwhile, was up last month. Average time to close loans in May was 45 days, according to the report, up from 44 days the month before. While the average time to close most loan types held steady, the overall average was driven up by a slight jump in VA
closing times, which increased to 49 days last month from 48 days in April.
Closing rates for all loans also increased, hitting 70% in May from 69% in April. The report also found that 69% of purchase loans and 69% of refinances had credit scores of 700 or above.
“Of the total loans closed in May, 62 percent were purchases and 37 percent represented refinances,” said Jonathan Corr, president and CEO of Ellie Mae. “This is up from April’s data, which showed that 59 percent were purchases while 40 percent were refinances. Additionally, the 30-year note rate dropped to 4.06 percent, its lowest point since May of 2015.”
Purchases surpassed 60% of closed loans in May for the first time since August of 2015, according to new data from Ellie Mae.