Mortgage Rates Climb: Ellie Mae
The average interest rate on a 30-year fixed rate mortgage climbed to 4.29% in July 2015 – its highest point since October 2014, according to mortgage software provider Ellie Mae.
The company reported the data in its most recent Origination Insight Report for July 2015. Since so many lenders use Ellie Mae’s mortgage management platform, the company believed a monthly sampling of its data could offer them insight into the U.S. mortgage industry’s originations and underwriting, Ellie Mae said.
The Pleasanton, Calif.-based company reported that the average interest rate stood at 4.12% in June 2015 and had reached 4.37% as of October 2014; it added that 63% of loans originated nationwide in July went to purchase property rather than to refinancing existing loans.
The software company also reported that the average FICO score on closed loans dropped down to 725, which represents a drop in the average score for the third month in a row.
“Mortgage rates appear to be rising in anticipation of the Federal Reserve’s first rate increase since the global financial crisis,” Ellie Mae President/CEO Jonathan Corr said. “However, credit availability appears to be broadening, which is certainly good news for consumers and the housing market.”