For the first time in 2018, the percentage of closed refinances increased during August, according to Ellie Mae’s Origination Insight Report.
The report said the percentage of closed refinances in August increased to 32 percent in August, up from 29 percent in July.
“The rise in interest rates has slowed since June, and we are seeing the percentage of refinances increase month-over-month since May,” Ellie Mae President and CEO Jonathan Corr said in a release. “This may reflect consumers taking an opportunity to refinance with the corresponding increase in equity.”
Ellie Mae said the time to close all loans during August held steady at 43 days for the second month, and time to close a purchase loan increased one day to 45 days in August.
According to the report, the average 30-year interest rate for all loans rose slightly in August to 4.92 percent, up from 4.91 percent in July and 4.90 percent in June. Ellie Mae said the percentage of adjustable rate mortgages remained at 6.6 percent for the second consecutive month.
Closing rates for all loans during August increased to the highest percentage in 2018 at 71.1 percent, up from 70.9 percent the month prior, the report found. Closing rates on purchase loans increased to 75.9 percent, up from 75.0 percent the month prior. Closing rates on refinances dropped slightly to 63.5 percent, down from 63.7 percent in July.
Overall FICO scores decreased by one point in August to 724, LTV decreased to 79 and DTI held at 26/39.