ICE: Purchases Eclipse Refinances for First Time in 18 Months
ICE Mortgage Technology, Pleasanton, Calif., reported new home purchases represented a higher percentage than refinances for the first time in nearly two years.
The company’s monthly Origination Insight Report said purchases rose to 51 percent of closed mortgage loans in June, up from 47 percent in May. Conversely, refinances represented 48 percent of closed loans, down from 52 percent the month prior. The remaining one percent of closed loans were for other purposes.
“While we are still seeing a strong refinance market, including the continued growth of cash-out refinances, the traditional summer purchase market is clearly evident in the data,” said Joe Tyrrell, President of ICE Mortgage Technology
The report also noted the average time to close all loans decreased to 49 days in June, down from 53 days in May. The average time to close a refinance decreased to 48 days, down from 55 days in May. However, the average time to close a purchase was 51 days, up from 50 in May.
Closing rates for all loans decreased slightly, to 75.3 percent in June, down from 76.9 percent in May. Closing rates on refinances decreased to 74.6 percent in June, down from 77.0 percent in May. Closing rates on purchase loans dropped to 76.3 percent in June, a slight decrease from 77.0 percent in May.