The mortgage closing rate reached its highest level since the report’s inception in February 2012, rising to 75.6%. It increased from 70.2% year-over-year and 74.8% from April.
Average FICO scores across all loan types stayed static at 728 from last month and grew from 724 a year ago. This is the highest average score since 730 in October 2016.
The average 30-year note rate dropped to 4.52% in May from 4.84% the year before and from 4.61% in April, marking the fifth consecutive month-over-month decline. May’s share of mortgage refinances edged up two percentage points annually to 32%, while dropping three points from April’s level. The purchase share made up 68% for the month, falling from 70% the year before and up from 65% last month.
“As the 30-year note rate declines for yet another month, we are seeing purchase and refinance activity on the rise,” Jonathan Corr, president and CEO of Ellie Mae, said in a press release. “Closing rates remain well over 75% and with the Mortgage Bankers Association reporting solid purchase volume and new inventory on the rise, we could be in for a very robust summer home buying season.”
The time to close on a mortgage hiked to 42 days from 41 the year before and from April’s 40. While both purchase and refinance loans had month-over-month closing time increases, refis jumped to 37 days from 33.
Data from the Origination Insight Report analyzes approximately 80% of mortgage applications initiated through the company’s Encompass platform. To calculate an overall closing rate, the loan applications sampling is initiated 90 days prior.