The percentage of closed purchase loans increased slightly in September to 76.4 percent of total loans, according to Ellie Mae’s latest Origination Insight Report.
Eliie Mae said closed refinances represented 29 percent of total closed loans during September.
“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,” Ellie Mae CEO Jonathan Corr said in a release. “We did see the first reduction in interest rates this month and with that, the percentage of [adjustable rate mortgages (ARMs)] began to increase. However, we believe that the seasonal decline in homebuying and continued affordability constraints will shape the purchase market.”
According to the report, the average 30-year interest rate for all loans during September decreased for the first time in 2018 to 4.91 percent, down from the 2018 high of 4.92 percent in August. The percentage for ARMs in September increased to 7.2 percent, up from 6.6 percent the month prior.
Ellie Mae said the time required to close all loans in September increased to 44 days, 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.
During the month, overall FICO scores increased by 3 points to 727; LTV held at 79 for the second month and DTI decreased to 25/39.