The percentage of closed purchase loans held steady at 71 percent of total closed loans in July for the second consecutive month, according to the most recent Origination Insight Report from Ellie Mae.
Ellie Mae said the closing percentages in June and July are the highest since it began tracking the data in 2011.
“The purchase market remained solid in July and as we see inventories rise, we might begin to see a transition to a buyer’s market,” Ellie Mae President and CEO Jonathan Corr said in a release. “The summer homebuying season is still in full swing and while interest rates have risen, we expect to see a continued increase in purchase percentages.”
The average 30-year interest rate for all loans rose slightly to 4.91 percent in July, up from 4.90 percent in June and a new Origination Insight Report high, according to the report. The percentage of adjustable rate mortgages dropped to 6.6 percent, down from 6.9 percent the month prior.
During the month, the percentage of refinances remained relatively steady with VA refinances rising to 25 percent, up from 23 percent the prior month. Conventional refinances held at 31 percent and FHA refinances held at 19 percent.
Ellie Mae said the time to close all loans rose one day to 43 days in July. Time to close refinances increased to 41 days, up from 37 days in June, and time to close purchases held at 44 days for the second month. Overall FICO scores decreased by one point in July to 725 while LTV remained at 80 and DTI remained at 26/39, Ellie Mae said.