Closing Rates Rise as 30-Year Note Rate Drops

Phil Hall

Jul 18, 2019

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.”

Link copied

Published

Jul 18, 2019

Analysis and Data

Mortgage Rates And Home Prices Soar, Leaving Homebuyers In Limbo

Redfin report highlights slump in sales, yet a glimmer of hope as new listings tick up.

As mortgage rates hover near their highest in two decades, a new report by Redfin reveals that U.S. home prices have climbed 3% year over year in the month leading to Sept. 17. Consequently, the typical monthly housing payment for Americans has surged to unprecedented levels...

Analysis and Data

Rising Mortgage Rates Drive Borrowers To Buydown Points

Western states lead in adoption as homeowners seek short-term relief.

With the average 30-year, fixed-rate mortgage hitting a 21-year peak in August, homeowners face added affordability challenges, as reported by Freddie Mac. In response, some borrowers are turning to mortgage buydown points as a strategy to temporarily lower monthly payments,...

Dec

Irvine, CA

More from

Industry News

CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Industry News

Sep 19, 2023

Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Industry News

Sep 18, 2023

FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Industry News

Sep 11, 2023

Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Industry News

Sep 11, 2023

If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities