August Ellie Mae Origination Insight Report Data Finds Interest Rates Fall To Record Lows; Refinances Rebound Slightly

PLEASANTON, Calif., Sept. 16, 2020

This comes as the 30-year rate on all loans continued to fall to 3.09 percent, now the lowest rate since Ellie Mae began tracking this data and down from 3.24 percent the month prior. The 30-year note rate VA loans fell below 3 percent to 2.86 percent in August, down from 3.02 percent in July. The 30-year note rate on conventional loans fell to 3.12 percent in August, down from 3.26 percent in July. Similarly, the 30-year rate on FHA loans fell to 3.10 percent in August, down from 3.26 percent in July.

Other statistics of note in August included:

• The time to close all loans increased to 49 days in August, up from 47 days the month prior. Time to close for purchase loans increased to 45 days in August, up from 44 days in July and time to close for refinances increased to 51 days in August, up from 50 the month prior.
• FICO scores continued to increase to 2020 highs, rising to 752 for all loans, up from 750 the month prior.
• Closing rates increased slightly to 77.2 in August, up from 77.1 percent in July.

"Interest rates are at historic lows, driving volume across both purchases and refinances. In August of 2019 we saw 30-year rates just over four percent across all loans, while this month we're seeing average rates almost one percentage point lower. Not only does this enable homebuyers to get more home for their dollar, it allows new homebuyers who might be waiting for a good deal to enter the market," said Joe Tyrrell, chief operating officer, Ellie Mae. "As lenders continue to manage high volumes, technology is bridging the gap to add efficiency to manual workflows behind the scenes while freeing up workforces to provide the human interaction that homebuyers demand."  

The Origination Insight Report mines data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass^® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

In addition to the Origination Insight Report, Ellie Mae also distributes data from its monthly Ellie Mae Millennial Tracker on the first Wednesday of each month. The Ellie Mae Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.