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According to ICE Mortgage Technology, there has been a considerable decrease in mortgage processing times since the start of the year.
Their reports suggest that the time required to close a mortgage purchase, which was 57 days on average in the month of January, dropped to 59 days in February and then to 51 days in the month of March.
A similar improvement has been seen in refinancing where the processing time dropped from 59 days in January to 52 days in February and March.
One reason why this has happened is the increase in the number of lenders who have adopted digital mortgage tools to enhance the loan origination process and assist homebuyers more effectively and efficiently.
The total number of refinances, however, dropped from 68% of total closed loans in February to 63% in March.
We can conclude that the pandemic has effectively shifted how people view their homes after months of near-record numbers of refinances.
New buyers may face an even more competitive market if we continue to see refinance volumes that are higher than normal in the months of summer.
In March, 83% of all originations were conventional loans, which had fallen one point from the previous month while FHA loans saw a rise of 1 point to 9%.
VA loans on the other hand only had a 3% share in the month of March, down from 5% in the months of January and February both.
The closing rates for all loans went up slightly for the months, from 76.4% in February to 77.9% in March.
While the closing rates for refinances increased month-over-month from 76.3% to 78%. The closing rates on purchases saw an increase from 77.1% to 78.1%.
Reference Source: Mortgage News Daily
