Mortgage Daily Logo

Monthly Mortgage Metrics Deteriorate

Mortgage News

Home loans took longer to close last month, and the closing rate deteriorated. Meanwhile, the average credit score moved higher on a month-over-month basis.

Conventional loans accounted for 64 percent of all loans closed during June. The share, which has been the same since April, crept up from 63 percent a year prior.

Residential mortgages that were insured by the Federal Housing Administration made up 23 percent of last month’s originations, off from 24 percent in June 2015.

Funded loans guaranteed by the Department of Veterans Affairs made up just 9 percent, where the share has stood since February 2016. VA share was 10 percent in June 2015.

Those were some of the statistics outlined in the June 2016 Origination Insight Report from Ellie Mae Inc. The report is based on a 75 percent sampling of applications initiated on the Encompass origination platform.

Out of all loan applications started during the previous 90-day cycle, 69.6 percent closed in June. The closing rate diminished from 70.6 percent the prior month but strengthened from 64.2 percent a year prior.

The closing rate on refinances was 64.7 percent. Purchase financing transactions had a much higher closing rate at 73.7 percent.

Conventional mortgages had a closing rate of 70.9 percent in June 2016, FHA’s closing rate was 68.4 percent, and the VA closing rate was
66.3 percent.

It took 46 days to close the average home loan last month, a day longer than in May but two days faster than in June 2015.

Refinance turnaround was 47 days, and purchase financing transactions took 46 days to close.

On conventional mortgages, the time to close was 46 days, while it was 47 days on FHA-insured loans and 50 days on VA-guaranteed mortgages.

The average loan had a FICO score of 726 during the most-recent month. Credit scores tightened two points compared to May 2016 but eased slightly from June 2015, when the average score was 727.

On conventional loans, credit scores averaged 736 on refinance transactions and 754 on purchase-money transactions.

Average FHA FICO scores were
653 on refinances and 686 on purchases.

VA scores averaged 707 on refinances and 708 on purchases.

Loan-to-value ratios on all closings averaged 81 percent in June, no different than in the last report or in the year-earlier report.

LTV ratios averaged 67 percent on conventional refinances and 80 percent on conventional purchases.

FHA LTV ratios averaged 79 percent on refinancings and 96 percent on purchase financing.

LTV ratios on VA refinances averaged 88 percent, and VA purchases had average LTV ratios of 98 percent.

The average debt-to-income ratio for all mortgages was 24/38 percent, the same as a month prior and 12 months prior.

DTI ratios averaged 25/38 percent on conventional mortgages used to refinance, and conventional loans used to finance a home purchase had average DTI ratios of 23/34 percent.

On refinances, FHA DTI ratios averaged 28/45 percent, and purchases had a 27/41 percent average.

VA refinances and purchases both had average DTI ratios of 24/40 percent.

Refinance share tumbled to 34 percent in June 2016 from 37 percent a month earlier and 38 percent a year earlier.

But the trend is likely to reverse given the significant decline in interest rates since last month’s Brexit vote.

Refinance share on conventional mortgages during the most-recent
month was 43 percent, while FHA refinance share was 15 percent and VA refinance share was 21 percent.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI