Lenders in April closed mortgages in 51 days
The average time to close on a mortgage has decreased for a fourth consecutive month to 51 days, according to a new study from ICE Mortgage Technology.
The study, ICE’s Origination Insight Report, also found April to be the second consecutive month of slowdown in share of refinances among total originations, dropping to 56% from 63% in March. The percentage of purchase mortgages increased to 43% of total closed loans. That’s the highest share since August 2020, and up sequentially from 36% in March.
Data for the study was derived from approximately 80% of all mortgage applications that were initiated on ICE’s Encompass platform.
The average interest rate for all loans was 3.22% in April, the report found — up from 2.99% in March. The average interest rate for all loans was 3.48% in April 2020.
Joe Tyrrell, ICE president, said the recent findings align with the company’s 2020 Borrower and Lender Insights Survey, which noted that digital mortgage technologies are making closing a mortgage loan “faster and easier.”
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