Home buyers and sellers are making it to settlement at a faster rate. The average time to close on all loans dropped by two days in February to 42 days, according to Ellie Mae’s Origination Insight Report. Ellie Mae economists are calling the drop “significant.”
For just purchase loans, the time to close dropped from 47 days to 45 days last month, according to the report.
The drop in average closing times is mostly due to a decrease in the overall refinancing market.
“With interest rates on the rise, we’re seeing the purchase market begin to gain some momentum,” says Jonathan Corr, president and CEO of Ellie Mae. “We know that a shift to a purchase market will drive the shortened time to close, and we will watch to see if the trend continues into the spring and summer months.”
Ellie Mae’s report shows that the time to close each loan type dropped from January to February. FHA loan closing times dropped from an average of 47 days to 43; conventional loans fell from 43 days to 41; and VA loans dropped from 50 days to 47.
Source: “‘Significant’ Reduction in Closing Times: Ellie Mae,” Mortgage News Daily (March 22, 2018)
