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June Ellie Mae Origination Insight Report Data Shows Purchase Market Rebounding As Interest Rates Continue To DeclinePLEASANTON, Calif., July 15, 2020 /PRNewswire/ -- Interest rates on all closed loans continued to decline in June to 3.40 percent, down from 3.43 percent in May, according to the latest Origination Insight Report from Ellie Mae®, the leading cloud-based loan origination platform provider for the mortgage industry. The 30-year rate on conventional loans fell again, dropping to 3.42 percent, down from 3.44 percent in May. Similarly, the 30-year rate on FHA loans fell to 3.41 percent in June, down from 3.45 percent in May. The 30-year rate on VA loans dropped to 3.20 percent in June, down from 3.24 percent in May. The purchase market began to rebound in June, accounting for 42 percent of all closed loans in the month, up from 35 percent the month prior. Refinances accounted for the remaining 58 percent of closed loans, down from 65 percent in May. Other statistics of note in June included:
"Interest rates decreased for the sixth consecutive month and we're seeing a rebound in the purchase market which now represents 42 percent of all closed loans, a seven percent increase from May," said Jonathan Corr, President and CEO of Ellie Mae. "Homebuyers are taking advantage of these historically low rates to both buy and refinance but it does appear that lenders are looking for borrowers with better credit across all mortgage products as FICO scores have continued to increase across the board since March." 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. MONTHLY ORIGINATION OVERVIEW FOR JUNE 2020
PROFILES OF CLOSED LOANS FOR JUNE 2020
More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at http://www.elliemae.com/about-us/news-reports/ellie-mae-reports/. To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior—or the March 2020 applications—to calculate an overall closing rate of 73.4 percent in June 2020 (see full report). About the Ellie Mae Origination Insight Report The Origination Insight Report details aggregated, de-identified data pulled from Ellie Mae's Encompass origination platform. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source. About Ellie Mae © 2020 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®, Velocify®, Capsilon®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.
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