Average Time to Close: 45 Days
For home buyers financing a home purchase, they should expect about 45 days to close, according to the latest Origination Insight Report from Ellie Mae. Last month the average closing time was 44 days.
VA loans rose from 48 days in April to 49 days in May, according to the report.
The closing rate for all loans in May rose to 70 percent. Purchase closing rates were 75 percent and refinancing closing rates rose to 67 percent.
Borrowers’ continued to have high credit scores. For conventional loans, 82 percent of the borrowers had credit scores over 700. On the other hand, only 39 percent of borrowers with FHA loans had credit scores higher than 700.
Overall, mortgages for home purchases are accounting for more originations. Purchase mortgages rose to 62 percent of all closed loans in May, marking the first time since August 2015 it reached over 60 percent.
Source: “Ellie Mae: Purchase Mortgages Now Make Up More Than 60% of Closed Loans,” HousingWire (June 15, 2016)