The share of closed loans for home purchase moved higher in September, to 71% compared to 68% in August and 62% in September 2017.
The share of loans that were refinances slipped to 29% from 32% in August and 38% in September 2017 according to the latest Origination Insight Report from Ellie Mae.
The closing rate across all loans was 71.1%, the same as in August; for purchase loans it was up from 75.9% to 76.4%; and for refinances it was up from 63.5% to 64.4%.
The time to close a loan increased by 1 day month-over-month to 44 days; no change for purchase loans (45) but up 4 days to 42 for refinances.
“We see refinances remain at a low percentage of aggregate closed loans and purchase inventory continues to be tight as we move into the fall,” said Jonathan Corr, president and CEO of Ellie Mae. “We did see the first reduction in interest rates this month and with that, the percentage of ARMs began to increase [from 6.6% in August to 7.2%in September]. However, we believe that the seasonal decline in home buying and continued affordability constraints will shape the purchase market.”
Overall FICO scores increased by 3 points to 727 in September. LTV held at 79 for the second month while DTI decreased to 25/39.
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