The percentage of closed purchase loans rose 4 percent in May to 70 percent, according to Ellie Mae’s latest Origination Insight Report.
Ellie Mae said May’s percentage of closed purchase loans is the highest since it began tracking the data in 2011.
The 30-year interest rate in May increased to 4.84 percent, up from 4.79 percent the month prior. The percentage of adjustable rate mortgages remained at 6.6 percent for the second month, the highest since June 2014.
“The start to the summer homebuying season is in full swing and while inventories remain tight, we’re seeing an increasing percentage of purchase loans,” Ellie Mae President and CEO Jonathan Corr said in a release. “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.”
The report also found 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.
For the third consecutive month, the time to close all loans held steady across the board at 41 days. Overall, FICO scores in May increased slightly for the fourth consecutive month to 724. LTV remained at 79 and DTI remained at 26/39.