According to the June Origination Insight Report from Ellie Mae, the 30-year note rate dropped for the sixth straight month to 4.40 percent, down from 4.52 percent in May.
The 30-year note rate for FHA loans decreased to 4.49 percent, down from 4.63 percent the month prior 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 month prior.
The report also said that closing rates hit historic highs in June, with the closing rate on all loans at 76.8 percent, up from 75.6 percent the month prior. Closing rates on purchase loans hit 78.8 percent while closing rates on refinances was 73.4 percent.
Other statistics of note in June included:
- The percentage of refinances decreased to 31 percent while purchases made up 69 percent of total closed loans.
- The percentage of Adjustable Rate Mortgages (ARMs) decreased to 6.3 percent, down from 6.7 percent in May.
- Average FICO scores rose slightly to 731, up from 728 the month prior.
“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 the report. “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.”