Mortgage Industry News
« Return to Mortgage Industry News
Share of Purchase Loans now Catching up With Refis
Wednesday, August 19, 2020
Refinance loans
continued to dominate mortgage originations in July, but the gap with purchase
loans is closing. Ellie Mae's Origination Insight Report for the month
showed refinances with a 54 percent share, down from 58 percent in June.
Purchasing increased to 46 percent from 42 percent. The rate on closed 30-year fixed
rate mortgages declined from an average of 3.40 percent the previous month to
3.24 percent. Those originated as conventional loans had a rate of 3.26 percent,
down from 3.42 percent. The FHA rate averaged 3.26 percent and the VA rate 3.02
percent, down 15 and 18 basis points, respectively. The distribution of loan types
shifted slightly. The FHA share picked up 1 percentage point to 11 percent and
conventional and VA loans each lost a point, dipping to 79 percent and 6
percent. The time to close all loans held at
47 days for the second month but the time to close refinances increased by two
days to 50 and purchase loans closed in 44 days rather than 46 the prior month.
Read Full Article