WASHINGTON–Both mortgage rates and the average time to close a mortgage loan (for Millennials) are down.
New data from Ellie Mae shows that Millennial mortgage borrowers are closing a loan in 44 days, the shortest time period since March 2016, according to Ellie Mae. Closing a purchase loan took two days less than the average at 42 days, while closing a refinance loan took 52 days—both fewer days than in January, according Ellie Mae.
“Purchase loans are increasing, indicating that Millennials are continuing to enter the first-time homebuyer market,” says Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, in a statement. “In addition, we saw time to close decrease from 49 days in January to 44 days in February, which indicates that our lenders are seeing more efficiency as they embrace mortgage automation.”
The average time it took for Millennial borrowers to close an FHA loan has also gotten faster, declining to 43 days in February from 47 days in January. The biggest improvement came in VA loans, which close on average in 41 days, down from 57 days in January.
Ellie Mae also reported that Millennial borrowers’ average FICO score ticked down in February, as well, to 723 from 724 in January, according to the Tracker.
Meanwhile, Freddie Mac reported average rates on the 30-year fixed rate mortgage declined for the third consecutive week.
According to Freddie Mac:
- The 30-year FRM averaged 4.10% with an average 0.5 point for the week ending April 6, 2017, down from one week earlier when it averaged 4.14%. One ear ago at the same time, the 30-year FRM averaged 3.59%.
- The 15-year FRM averaged 3.36% with an average 0.5 point, down from one week earlier week when it averaged 3.39%. A year ago at the same time the 15-year FRM averaged 2.88%.