Ellie Mae: Purchase Volume Climbed To 63% Of All Loans In July

Posted by Patrick Barnard on August 19, 2015 No Comments
Categories : Residential Mortgage

Lenders' share of purchase loan volume increased in July to 63%, up from 61% in June and up from 48% in January, as interest rates continued to rise, according to Ellie Mae's Origination Insight report.

The average rate on a 30-year fixed-rate mortgage rose to 4.29% by the end of July – up from 4.12% at the end of June to reach the highest level since October 2014, when the average rate was 4.37%.

Nearly two-thirds of loan applications, or 66.2%, closed in July – the highest percentage since Ellie Mae began tracking this data in August 2011.

Meanwhile, the closing rate on purchase loans climbed above 70% for the first time in four years.

Despite the higher rates, the average FICO score on closed loans fell for the third consecutive month to 725, its lowest level since February 2014.

‘Mortgage rates appear to be rising in anticipation of the Federal Reserve's first rate increase since the global financial crisis,’ says Jonathan Corr, president and CEO of Ellie Mae, in a statement. ‘However, credit availability appears to be broadening, which is certainly good news for consumers and the housing market.’

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