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Ellie Mae released its Origination Insight Report, which noted falling mortgage rates, shrinking refinances, and loosening credit restrictions in the month of February.
The report, culled from 57 percent of Ellie Mae's mortgage application data, found that the average rate for a 30-year mortgage fell to 4.65 percent. February's drop was the first time in 3 months that mortgage rates have decreased from the previous month.
ARM loans slowed as well for the first time in 5 months to 6.9 percent, which was still higher than the 2013 average of 4.2 percent.
Refinances on closed loans made up 43 percent of total closed loans, a drop of 4 percent from January's figure of 47 percent. The 2013 average for refinances on closed loans was 53 percent.
The time it took to close on refinances also fell in February by four days, from 44 days in January to 40 days in February. Closing on refinances, on average, took 45 days in 2013.
Ellie Mae also noted a slight loosening of credit restrictions, providing more opportunity for homebuyers.
33 percent of closed loans had a FICO score of 700 or less, up from the 24 percent average last year.
For all loans in February, the average credit score for closed loans was 724, while the average denied credit score was 689.
However, buyers with lower credit scores had better luck applying for FHA loans. The average credit score for successfully closed FHA loans was 669 in the month of February. The average credit score for denied FHA loans was 645.
