Purchase loans increased to 52% of all mortgage activity in April, up 6% from 46% in March, according to Ellie Mae's Origination Insight Report, which is based on data flowing through the firm's mortgage origination platform.
Due to the increase in origination volume in April – as the spring home shopping season commenced – the number of days to close for all loans rose increased slightly from 44 to 45 days.
Meanwhile, the overall closing rate on all loans exceeded 65% for the first time since reporting began in August 2011.
‘An improving economy and ongoing attractive rates seem to be contributing to the rise in purchase percentage, as we move full speed into the spring buying season,’ says Jonathan Corr, president and CEO of Ellie Mae, in a statement.
The average FICO score for all closed and denied loans in April was 729, down from 731 in March. The average FICO for all denied loans was 674, down from 676.