Report: Time to Close Shrinks
May 16, 2019
Possibly due to the use of technology, transactions are closing faster, according to Ellie Mae’s latest Insight Report.
The average time to close decreased to 40 days in April, down from 42 in March, Ellie Mae reported. The average time to close a refinance decreased to 33 days, while the time to close a purchase dropped to 43 days in the month.
Jonathon Corr, president and CEO of Ellie Mae, said technology is helping reduce the time to close.
"We are seeing closing times drop across the board as our lenders leverage technology for a more efficient and streamlined loan origination process," he said. "And as the 30-year note rate continues to decline and closing rates remain high, we expect to see an active spring home buying cycle."
Ellie Mae reported that closing rates for all loans decreased slightly to 74.8 percent in April. Refinance closing rates decreased to 70.7 percent and purchase closing rates decreased to 77.4 percent in April.
According to Ellie Mae, the average 30-year rate for all loans fell to 4.61 percent, down from 4.77 percent the month prior. The average 30-year rate on FHA loans decreased to 4.70 percent in April. Conventional and VA rates decreased to 4.62 percent and 4.41 percent, respectively.
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