Ellie Mae: September’s Closed Purchase Loans Rise – NMP Skip to main content

Ellie Mae: September’s Closed Purchase Loans Rise

NationalMortgageProfessional.com
Oct 17, 2018
The National Association of Realtors (NAR) reported that its Pending Home Sales Index (PHSI) dropped by 2.6 percent to 102.1 in October

The percentage of closed purchase loans increased in September to 71 percent of total loans according to Ellie Mae’s latest Origination Insight Report. Closed refinances represented 29 percent of total closed loans, returning to the July average.
 
In September, the average 30-year interest rate for all loans decreased for the first time in 2018 to 4.91 percent, down from the 2018 high of 4.92 percent in August. The percentage of adjustable-rate mortgages (ARMs) increased to 7.2 percent in September, up from 6.6 percent the month prior.
 
“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 Chief Executive Officer of Ellie Mae. “We did see the first reduction in interest rates this month and with that, the percentage of ARMs began to increase. However, we believe that the seasonal decline in home buying and continued affordability constraints will shape the purchase market.”
 
Closing rates for all loans in September held steady at 71.1 percent for the second month, the highest percentage in 2018. Closing rates on purchase loans increased to 76.4 percent, up from 75.9 percent the month prior. Closing rates on refinances increased to 64.4 percent in September, up from 63.5 percent in August.
 
The time to close all loans increased to 44 days in September, up from 43 days in August. Time to close a purchase loan held steady at 45 days, while time to close a refinance increased to 42 days in September, up from 38 the month prior.
Overall FICO scores increased by three points to 727 in September. LTV held at 79 for the second month while DTI decreased to 25/39.

 
Published
Oct 17, 2018
Equifax Telling Lenders Of Potential Errors In Credit Scores

About 12% of customers may have been affected, according to a source.

Industry News
May 27, 2022
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

Career
May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022