The percentage of closed purchase loans continued to increase, rising four percentage points to 66% in April, according to the most recent Origination Insight Report from Ellie Mae.
In April, 30-year interest rates rose to the highest point since Ellie Mae began tracking data in 2011, at 4.79%, up from 4.69% in March and the 2018 low of 4.33% in January. The percentage of adjustable-rate mortgages (ARMs) increased from 6.3% in March to 6.6% in April, the highest since June 2014.
“This month we saw interest rates increase to the highest percentage point since Ellie Mae began reporting data in 2011, and with that, the percentage of purchases increased four percentage points to 66 percent of total closed loans,” said Jonathan Corr, president and CEO of Ellie Mae.
“We’re entering the peak summer home-buying months, and despite tight inventories, we expect to see a robust purchase market. We’re also seeing our lenders’ time to close purchases decrease month-over-month,” he adds.
Other statistics of note in April included:
- The percentage of refinances once again decreased across the board, with FHA refinances dropping from 23% in March to 22% in April. Conventional refinances dropped from 43% in March to 38% in April. VA refinances dropped from 28% in March to 27% in April.
- The time to close all loans held steady across the board, with time to close all loans at 41 days for the second 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.