Purchase volume continued to increase in May, reaching 66% of all mortgage volume, as refinance volume continued to fall, according to Ellie Mae's Origination Insight Report.
In April, purchase volume was around 63% of all volume – in May 2013, it was about 42%.
The average number of days to close increased slightly in May, to 40 days from 39 days in April.
The month brought a decline in 15-year fixed-rate mortgages (FRMs), which fell from 12.2% of overall volume in April to 9.7% of volume in May.
The decline in refinances came regardless of the fact that interest rates were down, overall, in May compared to April. According to the report, the average rate for a 30-year FRM in May was 4.53%, down from April's 4.62%.
The average credit score for closed first-lien loans of all types was FICO 727 – up from April's 726 – indicating that lenders may once again be tightening credit. The average loan-to-value ratio was 82% while the average debt-to-income ratio (for all approved loans) was 24/37.
For its May report, Ellie Mae for the first time has included a breakdown of origination data by loan type including conventional, Veteran's Administration (VA) and Federal Housing Administration (FHA) loans.
‘Since January, purchase share has increased by at least three percentage points per month, and purchases now represent 66 percent of all closed loans,’ says Jonathan Corr, president and chief operating officer of Ellie Mae. ‘Purchase share has grown nearly 25 percentage points since May 2013.
‘Average days to close all loans moved back up to 40 in May, after falling below the 40-day mark last month for the first time since we began tracking data in August 2011,’ adds Corr.
‘From an interest rate perspective, the average 30-year rate fell to 4.530 percent, its lowest percent since November 2013,’ says Corr. ‘Our expanded coverage of the different loan categories also showed new 2014 lows for conventional (4.669 percent) and FHA (4.383 percent) 30-year interest rates.’
To view the full report, click here.