According to the August Origination Insight Report from Ellie Mae, the leading cloud-based platform provider for the mortgage finance industry, the 30-year note rate dropped for the eighth consecutive month to 4.07 percent, down from 4.18 percent in July.
The drop in interest rates month-over-month continues to drive up the percentage of refinances, which accounted for 43 percent of all loans in August, up from 38 percent the month prior. Purchase percentages as a share of all loans dropped under 60 percent for the first time in 2019, the report said.
Closing rates are also on the rise, with the closing rate on all loans at 77.3 percent, up from 77.0 percent in July. Closing rates on purchases increased to 80 percent in August, up from 79.3 percent in July, while closing rates on refinances dropped slightly to 72.5 percent in August, down from 72.9 percent the month prior.
“Interest rates continue to decline and we’re seeing homeowners capitalize on the refinance opportunity throughout the month of August,” Ellie Mae President and CEO Jonathan Corr said in the report.
Other statistics of note in August included:
- The time to close all loans held steady at 42 days in August. The time to close a refinance loan decreased to 39 days, down from 40 days the month prior, while the time to close a purchase loan increased from 43 days in July to 45 days in August.
- The percentage of Adjustable Rate Mortgages (ARMs) decreased to 5.3 percent, down from 5.7 percent in July.