August Origination Insight Report from Ellie Mae Sees Increase in Refinance Percentages

PLEASANTON, Calif.--()--The percentage of closed refinances increased for the first time in 2018 to 32 percent in August, up from 29 percent in July according to the Origination Insight Report from Ellie Mae® (NYSE:ELLI), the leading cloud-based platform provider for the mortgage finance industry.

In August, the average 30-year interest rate for all loans rose slightly to 4.92 percent, up from 4.91 percent in July and 4.90 percent in June. Rate increases have slowed substantially from the movement in the first six months of 2018 from 4.33 percent in January. The percentage of Adjustable Rate Mortgages (ARMs) held at 6.6 percent for the second consecutive month.

“The rise in interest rates has slowed since June, and we are seeing the percentage of refinances increase month-over-month since May,” said Jonathan Corr, president and CEO of Ellie Mae. “This may reflect consumers taking an opportunity to refinance with the corresponding increase in equity.”

Other statistics of note in August included:

  • Closing rates for all loans increased to the highest percentage in 2018 at 71.1 percent, up from 70.9 percent the month prior. Closing rates on purchase loans increased to 75.9 percent, up from 75.0 percent the month prior. Closing rates on refinances dropped slightly to 63.5 percent, down from 63.7 percent in July.
  • The time to close all loans held steady at 43 days for the second month. Time to close a purchase loan increased one day to 45 days in August.
  • Overall FICO scores decreased by one point in August to 724 while LTV decreased to 79 and DTI held 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 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.



    Aug. 2018*     Jul. 2018*     6 Months Ago     1 Year Ago
                  (Feb. 2018*)     (Aug. 2017*)
Closed Loans
Refinance     32 %     29 %     43 %     35 %


    68 %     71 %     57 %     65 %
FHA     20 %     20 %     19 %     22 %
Conventional     66 %     66 %     67 %     64 %
VA     10 %     10 %     10 %     10 %
Days to Close      
All     43       43       42       42  
Refinance     38       41       37       41  
Purchase     45       44       45       43  
Percentage of ARM and Fixed Loan Volume
ARM %     6.6 %     6.6 %     5.5 %     5.7 %
30-Year Rate
Average     4.920 %     4.910 %     4.480 %     4.270 %
*All references to months should be read as month ended.


    Closed First-Lien Loans
      (All Types)
FICO Score (FICO)     724
Loan-to-Value (LTV)     79
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 May 2018 applications—to calculate an overall closing rate of 71.7 percent in August 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 non-qualification.

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.


Ellie Mae, Inc.
Erica Harvill, 925-227-5913
Caitlin Coffee, 312-635-8204


Ellie Mae, Inc.
Erica Harvill, 925-227-5913
Caitlin Coffee, 312-635-8204