Closing rates hit new highs in June as the 30-year note rate sank for the sixth consecutive month, according to new data from Ellie Mae
Last month, the closing rate on all loans at 76.8 percent, up from 75.6 percent in May. Closing rates on purchase loans reached 78.8 percent and closing rates on refinances was 73.4 percent.
Also in June, the 30-year note rate dropped to 4.40 percent from 4.52 percent in May. The 30-year note rate for FHA loans decreased to 4.49 percent, down from 4.63 percent the month prior, and the 30-year note rate on Conventional loans fell to 4.41 percent, down from 4.52 percent. The 30-year note rate on VA loans sank to 4.20 percent in June, down from 4.31 percent the month prior.
Ellie Mae added that June’s percentage of refinances were 31 percent while purchases made up 69 percent of total closed loans. Average FICO scores were 731, up from 728 the month prior.
“As the 30-year note rate continues to decline, we are seeing robust purchase and refinance activity,” said Jonathan Corr, president and CEO of Ellie Mae. “Closing rates have hit the highest percentage since we began tracking data in 2011 and even with heavy summer activity, Ellie Mae’s customers are still seeing their times to close loans remain well below the industry average.”