Ellie Mae: Purchases, Closing Rates Hold Steady

Ellie Mae, Pleasanton, Calif., said the percentage of closed purchase loans held steady at 71 percent of total closed loans in July for the second consecutive month.

The company’s monthly Origination Insight Report noted this two-month high is the new highest percentage of purchase loans recorded since Ellie Mae began tracking data in 2011.

Meanwhile, the report said the time to close all loans rose one day to 43 days in July. Time to close refinances increased to 41 days, up from 37 days in June, while the time to close purchases held at 44 days for the second month.

Ellie Mae said overall FICO scores decreased by one point in July to 725 while LTV remained at 80 and DTI remained at 26/39.

“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 report also said the percentage of adjustable-rate mortgages dropped to 6.6 percent in July, down from 6.9 percent the month prior. The percentage of refinances remained relatively steady, with VA refinances rising to 25 percent, up from 23 percent the month prior. Conventional refinances held at 31 percent and FHA refinances held at 19 percent.