Ellie Mae: Purchase Loans at Highest Rate Since 2014

Ellie Mae, Pleasanton, Calif., said the percentage of closed purchase loans continued to increase, rising four percentage points to 66 percent in April, the highest level since 2014.

The company’s monthly Originations Insight report also noted its measure of 30-year interest rates rose to the highest point since it began tracking data in 2011 at 4.79 percent, up from 4.69 percent in March and the 2018 low of 4.33 percent in January. The percentage of adjustable-rate mortgages increased from 6.3 percent in March to 6.6 percent in April, the highest since June 2014.

“We’re entering the peak summer home buying months and despite tight inventories, we expect to see a robust purchase market,” said Jonathan Corr, president and CEO of Ellie Mae. “We’re also seeing our lenders’ time to close purchases decrease month-over-month.”

Ellie Mae reported the percentage of refinances again decreased across the board, with FHA refinances dropping from 23 percent in March to 22 percent in April. Conventional refinances dropped from 43 percent in March to 38 percent in April. VA Refinances dropped from 28 percent in March to 27 percent in April.

The report said time to close all loans held steady at 41 days for the second month. Time to close a conventional purchase dropped one day to 41 days in April.

Overall FICO scores increased slightly for the third consecutive month to 723. LTV remained at 79 and DTI remained at 26/39.