Purchase Loan Activity Climbs to 61 Percent of Lenders' Total Volume, According to Latest Ellie Mae Origination Insight Report
PLEASANTON, Calif. – July 15, 2015 – Purchase loan activity climbed 3 points to account for 61 percent of lenders’ overall mortgage volume, according to the latest Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. This marks the first time that purchase loans have reached 60 percent since October 2014. Meanwhile, lenders’ closing rate on all purchase loans rose to 69 percent, the highest level since Ellie Mae began tracking this data in August 2011.
According to the latest report, the average 30-year rate on a closed loan rose from 4.013% to 4.118%. The data also showed that the average FICO score on a closed loan in June fell three points to 727, the lowest of the year.
“With a surging housing market and U.S. home sales at their highest level in years, lenders remained busy in June,” said Jonathan Corr, president and CEO of Ellie Mae. “The improving closing rate is a continued sign that borrowers are being approved and following through with purchases.”
The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.
MONTHLY ORIGINATION OVERVIEW FOR JUNE 2015