Things are looking strong for purchase originations according to the latest data from Ellie Mae.
The mortgage software firm says that originations for purchase in July held steady from June at 71%. It’s the highest share of total originations that were for home purchase since Ellie Mae began tracking that metric in 2011.
The share of refinances remained relatively steady with VA refinances rising to 25% (from 23% in June), conventional refinances held at 31% and FHA refinances held at 19%.
"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," said Jonathan Corr, president and CEO of Ellie Mae. "The summer home buying season is still in full swing and while interest rates have risen, we expect to see a continued increase in purchase percentages."
Average interest rates in July edged up to 4.91% in July from 4.90% in June for a 30-year loan. The percentage of ARMs dropped to 6.6% from 6.9% in the previous month.
Overall FICO scores were down 1 point in July to 725 while LTV remained at 80 and DTI remained at 26/39.
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