ICE Mortgage Technology’s Latest Origination Insight Report Shows Purchases Eclipse Refinances for First Time in 18 Months
ICE Mortgage Technology, part of Intercontinental Exchange (NYSE: ICE), released its Origination Insight Report for June 2021, indicating that new home purchases constituted 51% of closed mortgage loans, surpassing refinances at 48%. This marks the first occurrence since December 2019. The average closing time for all loans decreased to 49 days from 53 days in May. However, the overall closing rate fell to 75.3%. The data reflects a robust demand for home ownership and ICE's digital solutions.
- New home purchases increased to 51% of closed loans in June 2021, the highest since December 2019.
- Average time to close all loans decreased to 49 days from 53 days in May, indicating improved efficiency.
- Closing rates for all loans dropped to 75.3% in June, down from 76.9% in May.
- Closing rates for refinances decreased to 74.6% in June, down from 77.0% in May.
ICE Mortgage Technology™, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, released its monthly Origination Insight Report (OIR) today. This month’s OIR notes that, of the total number of closed mortgage loans in June 2021, new home purchases represented a higher percentage than refinances. This is the first time since December 2019 that purchases eclipsed refinances in the OIR.
According to the report, purchases rose to 51 percent of closed mortgage loans in June, up from 47 percent in the month prior. Conversely, refinances represented 48 percent of closed loans, down from 52 percent the month prior. The remaining one percent of closed loans were for other purposes.
“While we are still seeing a strong refinance market, including the continued growth of cash-out refinances, the traditional summer purchase market is clearly evident in the data,” said Joe Tyrrell, President of ICE Mortgage Technology. “These numbers are a testament to the strong and resilient demand for homeownership and the demand for ICE Mortgage Technology’s digital solutions.”
The OIR also notes that, in June, the average time to close all loans decreased to 49 days, down from 53 days in May. The average time to close a refinance decreased to 48 days, down from 55 days the month prior. However, the average time to close a purchase was 51 days, up from 50 the month prior.
Closing rates for all loans decreased slightly, to 75.3 percent in June, down from 76.9 percent in May. Closing rates on refinances decreased to 74.6 percent in June, down from 77.0 percent in May. Closing rates on purchase loans dropped to 76.3 percent in June, a slight decrease from 77.0 percent in May.
The ICE Mortgage Technology Origination Insight Report leverages data from a robust sampling of approximately 80 percent of all mortgage applications that were initiated on the Encompass® Lending Platform. ICE Mortgage Technology views its Origination Insight Report as a representative proxy for the underwriting standards employed by lenders across the country.
MONTHLY ORIGINATION OVERVIEW FOR JUNE 2021
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June 2021* |
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May 2021* |
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6 Months Ago
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1 Year Ago
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Closed Loans |
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Purpose |
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Refinance |
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Purchase |
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Type |
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FHA |
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Conventional |
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VA |
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Days to Close |
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All |
49 |
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53 |
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58 |
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47 |
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Refinance |
48 |
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55 |
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59 |
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48 |
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Purchase |
51 |
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50 |
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56 |
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46 |
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Percentage of ARM and Fixed Loan Volume |
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ARM % |
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30-Year Rate |
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Average |
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*All references to months should be read as month ended. |
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PROFILES OF CLOSED LOANS FOR JUNE 2021
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Closed First-Lien Loans
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FICO Score (FICO) |
743 |
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Loan-to-Value (LTV) |
74 |
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Debt-to-Income (DTI) |
24/36 |
More information and analysis of closed and denied loans by loan purpose and investor are available in the full report at https://www.icemortgagetechnology.com/mortgage-data/origination-insight-reports.
To produce a meaningful view of lender pull-through, ICE Mortgage Technology reviewed a sampling of loan applications initiated 90 days prior, comprised of the loan applications initiated in March 2021, to calculate an overall closing rate of 75.3 percent in June 2021 (see full report).
In addition to the Origination Insight Report, ICE Mortgage Technology also distributes data from its monthly Millennial Tracker. The Millennial Tracker focuses on mortgage applications submitted by borrowers born between the years 1980 and 1999.
About the Origination Insight Report by ICE Mortgage Technology
The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification.
The Origination Insight Report details aggregated, de-identified data pulled from the Encompass origination platform.
News organizations have the right to reuse this data, provided that ICE Mortgage Technology is credited as the source.
ICE Mortgage Technology combines technology, data and expertise to automate the entire mortgage process from consumer engagement through loan registration and every step and task in between. ICE Mortgage Technology is the leading cloud-based loan origination platform provider for the mortgage industry with solutions that enable lenders to originate more loans, lower origination costs, and reduce the time to close, all while ensuring the highest levels of compliance, quality, and efficiency. Visit icemortgagetechnology.com or call (877) 355-4362 to learn more.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 4, 2021.
© 2021 ICE Mortgage Technology, Inc. All rights reserved. Encompass® and the ICE Mortgage Technology logo are trademarks of the entities of ICE Mortgage Technology, Inc.
Source: Intercontinental Exchange
ICE-CORP
View source version on businesswire.com: https://www.businesswire.com/news/home/20210809005119/en/
FAQ
What does the June 2021 OIR report from ICE indicate about home purchases and refinances?
How has the average closing time for loans changed according to ICE's June report?
What were the closing rates for loans in June 2021 according to ICE Mortgage Technology?
How has the demand for homeownership changed according to ICE's June report?
What is the significance of the June 2021 OIR for ICE investors?
