The share of mortgage originations that were for purchases hit the highest level since 2014 in April.
The 66% share of all closed loans was a 4-percentage-point rise from March and coincides with 30-year mortgages rate hitting 4.79%, up from 4.69% in March and the highest level since Ellie Mae began tracking data in 2011.
The mortgage software firm’s April Origination Report also shows that the percentage of loans that were ARMs increased to 6.6%, up from 6.3% in March and the highest since June 2014.
The percentage of refinances once again decreased with FHA refinances dropping from 1 percentage point to 22 percent in April (from March). Conventional refinances dropped 5 percentage points to 38%; and VA Refinances dropped 1 percentage point to 27 percent.
“We’re entering the peak summer homebuying months and despite tight inventories, we expect to see a robust purchase market,” said Jonathan Corr, president and CEO of Ellie Mae. “We’re also seeing our lenders’ time to close purchases decrease month-over-month as they leverage our true digital mortgage solutions for better efficiency.”
The time to close all loans held steady at 41 days for the second consecutive month. Time to close a conventional purchase dropped one day to 41 days in April.
Overall FICO scores increased slightly for the third consecutive month to 723. LTV remained at 79 and DTI remained at 26/39.
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