The share of mortgages for home purchase was 71% of all closed loans in June, the highest share since Ellie Mae began tracking data in 2011.
Meanwhile, the 30-year interest rate for fixed rate mortgages rose to 4.9% from 4.84% in May. The share of ARMs was up to 6.9% from 6.6%.
“While inventories remain tight and interest rates are on the rise, we are still seeing a very robust purchase market with 71% of all loans representing home purchases and closing rates at 75% on purchase loans,” said Jonathan Corr, president and CEO of Ellie Mae.
Among refinances, the share of closed loans that were FHA fell to 19%, conventional refinances were down to 31%, and VAs declined to 23%.
Credit quality improved
Ellie Mae’s Originations Insight Report also reveals that credit quality was higher in June than in May with the average FICO score rising 2 points to 726, the fourth straight monthly rise. LTV rose to 80 and DTI remained at 26/39.
The report is based on sampling of around 80% of mortgage loans originated through Ellie Mae’s Encompass mortgage management solution.
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