Average FICO scores are increasing across the board, says Ellie Mae

Ellie Mae‘s Insight Origin Report for June detailed the drop in mortgage rates for the sixth consecutive month and noted some interesting trends in closing rates and FICO scores.

According to the report, the 30-year average rate fell from 3.43% in May to 3.4% in June.

“Interest rates have fallen for the sixth month in a row and we are seeing a rebound in the buying market which now accounts for 42% of all loans closed, a 7% increase from May,” said Jonathan Corr, President and CEO of Ellie Mae.

During the month, the 30-year conventional loan rate fell to 3.42%, from 3.4% in May. The VA loan rate fell to 3.2% from 3.24% and the 30-year rate on FHA loans stood at 3.41%, from 3.45% the previous month.

Notably, the closing rates for all loans fell to 73.4% in June, from 76% in May, and the average closing time rose to 47 days in June, from 45 days in May.

Ellie Mae says closing rates on refinances fell to 73.2% in June from 75.9% in May, and closing rates on purchase loans fell 76.4% in May to 74.2% in June.

“Homebuyers are taking advantage of these historically low rates to buy and refinance, but it appears lenders are looking for borrowers with better credit for all mortgage products as FICO scores have continued to rise across the board since March. “said Corr.

According to Ellie Mae, average FICO scores on all closed loans rose to 751 in June, from 750 in May, while FICO scores increased month-over-month for conventional loan purchases and refinances, FHA and VA.

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