The percentage of purchase home loans relative to refinancings continued to increase, according to Ellie Mae’s most recent Origination Insight Report.
In May, home purchases represented 68% of all closed loans, representing a 3% increase from the month prior. Specifically, the percentage of conventional purchase loans increased to 61%. Federal Housing Administration purchase loans increased to 82%, and Veterans Affairs purchase loans increased to 73%.
The average 30-year note decreased for the first time in 2017, to 4.33%, which was down from 4.41% the prior month but still up from 4.06% during the same period last year. The percentage of adjustable-rate mortgages on conventional loans continued its rise, to 7.5% in May, up from 7.3% the month prior and 5.5% one year ago.
Additionally, the average time to close all loans held steady at 42 days in May. The time to close a refinance also held at 41 days, and the time to close a purchase remained at 42 days.
“The start of the peak summer home-buying period, combined with fewer refinances due to higher interest rates, drove purchases to the largest percentage of total loans since we began tracking data in 2011,” says Jonathan Corr, president and CEO of Ellie Mae.
Read more about the May data here.