October Origination Insight Report From Ellie Mae Shows Percentage of Refinances Ticks Slightly Higher as Interest Rates Dip to New 2017 Low

November 15, 2017 at 9:00 AM EST

PLEASANTON, Calif.--(BUSINESS WIRE)--Nov. 15, 2017-- The percentage of refinances climbed another percentage point to 39 percent of total loans in October, the highest percentage since February of 2017. This is coupled with a decrease in interest rates for the sixth straight month to 4.20 percent, a new 2017 low, according to the October Origination Insight Report from Ellie Mae® (NYSE:ELLI), the leading cloud-based platform provider for the mortgage finance industry. Time to close a refinance stayed steady at the 40 day mark, the shortest time to close a refinance since February 2015.

“We are continuing to see borrowers take advantage of the lower interest rates as the refinance percentage increased to 39 percent of total loans in the month,” said Jonathan Corr, president and CEO of Ellie Mae. “We saw increases in October across all loan types, with FHA refinances at 23 percent, conventional refinances at 46 percent and VA refinances at 32 percent of all closed loans.”

Other statistics of note in October included:

  • The percentage breakdown of all closed loans remained steady with conventional loans at 66 percent, FHA loans at 20 percent and VA loans at 10 percent.
  • The average FICO score on all closed loans remained steady at 724 in October. FHA purchase FICO scores dropped one point to 681 and FHA refinances increased one point to 650. Conventional refinance FICO scores rose one point to 732 and conventional purchase FICO scores held at 752. VA refinance FICO scores increased one point to 702 and VA purchase FICO scores also dropped a point to 708.
  • Closing time for all loans held at 43 days for the second straight month.
  • The percentage of ARMs remained at 5.5 percent for the second straight month.

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.


    Oct. 2017*   Sept. 2017*  

6 Months
(Apr. 2017*)



1 Year Ago
(Oct. 2016*)


Closed Loans                
Refinance   39%   38%   35%   47%
Purchase   61%   62%   65%   53%
FHA   20%   20%   23%   20%
Conventional   66%   66%   63%   68%
VA   10%   10%   10%   9%
Days to Close                
All   43   43   42   48
Refinance   40   40   41   50
Purchase   44   44   42   46
Percentage of ARM and Fixed Loan Volume                
ARM %   5.5%   5.5%   5.9%   4.0%
30-Year Rate                
Average   4.20%   4.21%   4.41%   3.76%

*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)   25/39

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 July 2017 applications—to calculate an overall closing rate of 70.4 percent in October 2017 (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.

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, reduce 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.

© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, 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.

Source: Ellie Mae, Inc.

Ellie Mae, Inc.
Erica Harvill, 925-227-5913
Alexandra Gardell Kreuter, 646-428-0618