Refinances Rebound Slightly, Representing 37 Percent of Closed Loans, According to July Origination Insight Report from Ellie Mae

30-year note rate continues decline, while closing rate increases to over 71 percent

PLEASANTON, Calif. – August 17, 2016 – Refinances increased to 37 percent of all closed loans in July, up from 34 percent in June according to the latest Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Purchases represented 62 percent of closed loans in July, down from a high of 65 percent in June. Additionally, the 30-year note rate continued to decline to 3.870 from 3.970 in June.

The average time to close all loans remained steady at 46 days in July. The time to close a purchase also remained at 46 days while the time to close a refinance increased to 48 days in July, up from 47 days in June. The average time to close an FHA loan remained at 47 days in July while time to close an FHA refinance rose to 49 days in July, up from 47 days in June. Time to close an FHA purchase loan increased to 47 days in July, up from 46 days in June.

Closing rates for all loans increased to 71.6 percent in July, up from 69.6 percent in June. Refinance closing rates increased to 66.6 percent in July, up from 64.7 percent in June, and purchase closing rates increased to 75.7 percent in July, up from 73.7 percent in June.

“Refinances are making a slight rebound in July, representing 37 percent of closed loans in July, up from 34 percent in June,” said Jonathan Corr, president and CEO of Ellie Mae. “Average FICO scores were also on the rise, climbing back to 727, which is the highest average we’ve seen since June of 2015.”

The Origination Insight Report mines its application data from a robust sampling of approximately 75 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.

Ellie Mae also distributes its monthly Ellie Mae Millennial Tracker, which focuses on millennial mortgage applications during specific time periods. Ellie Mae defines millennials as applicants born between the years 1980 and 1999. The Millennial Tracker will continue to be released on the first Wednesday of each month.

Other findings from the July report:

  • Conventional refinance average FICO scores were 739 in July. This is the highest average score since March of 2015.
  • The Debt-to-Income (DTI) ratio remained steady at 24/38 and the Loan-to-Value (LTV) ratio fell to 80 from 81 in June.


6 Months Ago
(Jan. 2016)*
1 Year Ago
(July 2015)*
Closed Loans
Refinance 37% 34% 47% 36%
Purchase 62% 65% 52% 63%
FHA 23% 23% 22% 24%
Conventional 65% 64% 65% 62%
VA 9% 9% 10% 10%
Days to Close
All 46 46 50 48
Refinance 48 47 48 52
Purchase 46 46 51 45
Percentage of ARM and Fixed Loan Volume
ARM % 4.5% 4.8% 5.3% 5.5%
30-Year Rate
Average 3.87% 3.97% 4.30% 4.28%

*All references to months should be read as month ended.

  Closed First-Lien Loans (All Types)
FICO Score (FICO) 727
Loan-to-Value (LTV) 80
Debt-to-Income (DTI) 24/38

More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior—or the April 2016 applications—to calculate an overall closing rate of 71.6 percent in July 2016 (see full report).

About the Ellie Mae Origination Insight Report

The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification.

The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass origination platform. The report does not disclose client-specific or proprietary information.

News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit or call 877.355.4362 to learn more.


Erica Harvill
Ellie Mae, Inc.
(925) 227-5913

Alexandra Gardell Kreuter
(646) 428-0618

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© 2016 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network, Mavent®, Millennial Tracker, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the Ellie Mae logo are trademarks 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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