The share of mortgage originations for home purchase rose 4% in May according to data from Ellie Mae.
The mortgage software firm’s latest Origination Insight Report reveals a 70% share for purchase loans, the highest since the firm started tracking data in 2011.
Meanwhile, the 30-year FRM interest rate reached 4.84%, up from 4.79% in April. The share of ARMs remained at 6.6% for a second straight month.
“The start to the summer home buying season is in full swing and while inventories remain tight, we’re seeing an increasing percentage of purchase loans,” said Jonathan Corr, president and CEO of Ellie Mae. “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% as more lenders take advantage of digital mortgage solutions to drive efficiencies and improve consumer experience.”
Refinance loan originations drop
The share of all originations that were FHA refinances dropped from 22% to 20%, conventional refinances were down from 38% to 34%, VA refinances were down from 27% to 25%.
Overall FICO scores increased slightly for the fourth consecutive month to 724. LTV remained at 79 and DTI remained at 26/39.
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