Purchase Closed Loans Hit High Point

Ellie Mae, Pleasanton, Calif., said the percentage of closed purchase loans continued to increase, rising four percentage points in May to 70 percent, the highest percentage it began tracking data in 2011.

The company’s monthly Origination Insights Report said the percentage of adjustable-rate mortgages held at 6.6 percent for the second month, the highest since June 2014.

“The start to the summer home buying season is in full swing and while inventories remain tight, we’re seeing an increasing percentage of purchase loans,” said Jonathan Corr, president and CEO of Ellie Mae. “Even with the shift to a strong purchase market, closing times have remained steady, hovering around 41 days, and closing rates have increased slightly to just over 70 percent as more lenders take advantage of digital mortgage solutions to drive efficiencies and improve consumer experience.”

Other report highlights:

–The percentage of refinances decreased across the board, with FHA refinances dropping from 22 percent in April to 20 percent in May. Conventional refinances dropped from 38 percent in April to 34 percent in May. VA Refinances dropped from 27 percent in April to 25 percent in May.

–Time to close all loans held steady across the board with time to close all loans at 41 days for the third month.

–Overall FICO scores increased slightly for the fourth consecutive month to 724. LTV remained at 79 and DTI remained at 26/39.