The percentage of closed purchase loans inched up 1 percent from May and reached a record high during June, according to the latest Origination Insight Report from Ellie Mae.
Ellie Mae said the percentage of closed purchase loans during June was 71 percent, which it said was the highest percentage of closed purchase loans recorded since it began tracking data in 2011.
“While inventories remain tight and interest rates are on the rise, we are still seeing a very robust purchase market, with 71 percent of all loans representing home purchases and closing rates at 75 percent on purchase loans,” Ellie Mae President and CEO Jonathan Corr said in a release.
“We hope to see the time to close decrease in the coming months as more lenders take advantage of digital mortgage solutions like Encompass Consumer Connect that are designed to turn homebuyer interest into applications and drive a more efficient loan origination process,” Corr added.
During June, the 30-year interest rate increased to 4.9 percent, up from 4.84 in May, the report said. The percentage of adjustable rate mortgages rose to 6.9 percent, up from 6.6 percent in May.
Ellie Mae also found that the percentage of refinances in June decreased across the board, with FHA refinances at 19 percent, conventional refinances at 31 percent and Veterans Affairs refinances at 23 percent.
The time to close all loans in June rose one day to 42 days in June. Time to close refinances held at 37 days during the month, and time to close purchases increased to 44 days, up from 43 the month prior, according to Ellie Mae.
For the fourth consecutive month, overall FICO scores (726) increased. Ellie Mae said loan-to-value rose to 80 and debt-to-income remained at 26/39 during June.