The 30-year note rate dropped in June for the sixth consecutive month to 4.40 percent, down from 4.52 percent in May, according to Ellie Mae’s latest Origination Insight Report.
Ellie Mae said the 30-year note rate for FHA loans decreased to 4.49 percent, down from 4.63 percent in May and the 30-year note rate on conventional loans decreased to 4.41 percent, down from 4.52 percent. The 30-year note rate on VA loans also dropped to 4.20 percent in June, down from 4.31 percent the prior month.
“As the 30-year note rate continues to decline, we are seeing robust purchase and refinance activity,” Ellie Mae President and CEO Jonathan Corr said in a release. “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.”
According to the report, closing rates hit historic highs in June with the closing rate on all loans at 76.8 percent, up from 75.6 percent in May. Closing rates on purchase loans hit 78.8 percent while closing rates on refinances was 73.4 percent.
Additionally, the percentage of refinances decreased to 31 percent in June with purchase loans comprising 69 percent of total closed loans. The percentage of adjustable rate mortgages in June decreased to 6.3 percent, down from 6.7 percent in May.
During June, average FICO scores rose slightly to 731, up from 728 the month prior.