According to the latest Origination Insight Report from Ellie Mae, home purchases represented 46 percent of all closed loans in July, up from 42 percent in June, while refinances still represented the majority of closed loans in the month at 54 percent, down from 58 percent the month prior.
The 30-year rate on all loans continued to drop, to 3.24 percent, down from 3.40 percent in June. The 30-year note rate on conventional loans fell to 3.26 percent in July, down from 3.42 percent in June.
Similarly, the 30-year rate on FHA loans fell to 3.26 percent in July, down from 3.41 percent in June. The 30-year rate on VA loans dropped to 3.02 percent in July, down from 3.20 percent in June.
The time to close all loans held at 47 days for the second month. Time to close for purchase loans decreased to 44 days, down from 46 the month prior, while time to close refinances increased to 50 days, up from 48 days the month prior.
FICO scores increased month-over-month for refinances across conventional, FHA and VA loans.
Closing rates increased to 77.1 percent in July, up from 73.4 percent in June.
“If we look at this month versus the same time in 2019, interest rates are down close to a full percentage point, giving new home buyers the opportunity to stretch their dollar as they purchase and existing home buyers the ability to reduce monthly costs,” says Jonathan Corr, president and CEO of Ellie Mae.
For more information about Ellie Mae’s report, click here.
Photo: Jonathan Corr