Market Overview

July Origination Insight Report From Ellie Mae Sees Purchase Percentage and Closing Rates Hold Steady


The percentage of closed purchase loans held steady at 71 percent of
total closed loans in July for the second consecutive month according to
the most recent Origination
Insight Report
from Ellie
® (NYSE:ELLI), the leading cloud-based platform
provider for the mortgage finance industry. This two-month high is the
new highest percentage of purchase loans recorded since Ellie Mae began
tracking data in 2011.

In July, the average 30-year interest rate for all loans rose slightly
to 4.91 percent, up from 4.90 percent in June and a new Origination
Insight Report
high. The percentage of Adjustable Rate Mortgages
(ARMs) dropped to 6.6 percent, down from 6.9 percent the month prior.

"The purchase market remained solid in July and as we see inventories
rise, we might begin to see a transition to a buyer's market," said
Jonathan Corr, president and CEO of Ellie Mae. "The summer home buying
season is still in full swing and while interest rates have risen, we
expect to see a continued increase in purchase percentages."

Other statistics of note in July included:

  • The percentage of refinances remained relatively steady with VA
    refinances rising to 25 percent, up from 23 percent the month prior.
    Conventional refinances held at 31 percent and FHA refinances held at
    19 percent.
  • The time to close all loans rose one day to 43 days in July. Time to
    close refinances increased to 41 days, up from 37 days in June, and
    time to close purchases held at 44 days for the second month.
  • Overall FICO scores decreased by one point in July to 725 while LTV
    remained at 80 and DTI remained at 26/39.

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
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.



    Jul. 2018*   June 2018*  

6 Months
(Jan. 2018*)


1 Year Ago
(Jul. 2017*)

Closed Loans
Refinance   29%   29%   45%   35%
Purchase   71%   71%   55%   65%
FHA   20%   20%   19%   22%
Conventional   66%   66%   67%   64%
VA   10%   10%   10%   10%
Days to Close
All   43   42   44   43
Refinance   41   37   40   42
Purchase   44   44   47   43
Percentage of ARM and Fixed Loan Volume
ARM %   6.6%   6.9%   5.5%   5.7%
30-Year Rate
Average   4.910%   4.900%   4.330%   4.250%

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




Closed First-Lien Loans
(All Types)

FICO Score (FICO)   725
Loan-to-Value (LTV)   80
Debt-to-Income (DTI)   26/39

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 2018
applications—to calculate an overall closing rate of 70.9 percent in
July 2018 (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. 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 nonqualification.

The Origination Insight Report details aggregated, anonymized
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

Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for
the mortgage finance industry. Ellie Mae's technology solutions enable
lenders to originate more loans, lower origination costs, and reduce the
time to close, all while ensuring the highest levels of compliance,
quality, and efficiency. Visit
or call (877) 355-4362 to learn more.

© 2018 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, Mavent®,
Velocify®, 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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