The May Origination Insight Report from Ellie Mae®, out Wednesday, reported the 30-year note rate dropped for the fifth straight month to 4.52%, down from 4.61% in April and the time to close crept up to 42 days for all loans, up from 40 days the month prior.
There was a substantial jump in the time to close refinances, rising from 33 days in April to 37 days in May. Time to close purchase loans increased one day from 43 days in April to 44 days in May.
“As the 30-year note rate declines for yet another month, we are seeing purchase and refinance activity on the rise,” said Jonathan Corr, president and CEO of Ellie Mae. “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.”
Other statistics of note in May included:
- The percentage of refinances decreased to 32% while purchases made up 68% of total closed loans.
- The percentage of Adjustable Rate Mortgages (ARMs) decreased to 6.7%, down from 6.8% in April.
- Closing rates increased to 75.6%, up from 74.8% in April.
