In the constantly fluctuating world of mortgages and home values, one thing that held steady in July was the percentage of closed purchase loans. The most recent Origination Insight Report [1] from Ellie Mae [2] found the rate holding at 71 percent for the second consecutive month—which keeps it tied as the highest percentage of purchase loans recorded since Ellie Mae began tracking data in 2011.
However, all is not precisely level compared to June. In July, the average 30-year interest rate for all loans rose slightly to 4.91 percent, up from 4.90 percent, according to Ellie. At the same time, the percentage of adjustable-rate mortgages dropped to 6.6 percent, down from 6.9 percent the month prior.
"The purchase market remained solid in July and as we see inventories rise, we might begin to see a transition to a buyer's market," said Jonathan Corr, President and CEO of Ellie Mae. "The summer home buying season is still in full swing and while interest rates have risen, we expect to see a continued increase in purchase percentages."
The percentage of refinances remained relatively steady as well, Ellie reported. VA refinances were up 2 percent to 25 percent from June. Conventional refinances held at 31 percent, while FHA refinances held at 19 percent.
Also, according to Ellie Mae, the time to close all loans rose one day, to 43, days in July. Time to close refinances increased to 41 days, which was up four days, from June's 37. Meanwhile, time to close purchases held flat at 44 days for the second straight month.
Overall FICO scores decreased by one point in July to 725 while LTV remained at 80 and DTI remained at 26/39, Fannie reported.
The Origination Insight Report mines data from approximately 80 percent of all mortgage applications that were initiated on the Ellie Mae Encompass all-in-one mortgage management solution.