The housing market continued its shift toward a purchase market, however the shift slowed in July as refinances picked up slightly.
Purchase originations increased to 76.2% of the total originations, up from 75.1% in June, according to Ellie Mae’s July Origination Insights report.
“The market has been shifting from refis to purchases but we saw a pick-up in refinancing with lower rates,” said Jonathan Corr, Ellie Mae president and CEO. “Overall, closing rates rose in July and Purchase loan closing rates increased to 76.2%.”
Refinance closed loans increased from 32% in June to 35% in July while closed purchase loans dropped from 68% to 65%. Closed refinances are still down from last year’s 37% and purchases are up from 62% last year.
The 30-year interest rate not decreased to an average 4.25% in July, down from 4.41% in April to its lowest level since January.
The number of adjustable-rate mortgages decreased in July, according to the report. The percentage of ARMs dropped from 5.97% to 5.7%, however this is still up significantly from 4.5% last year.
Closing times for all loans remained flat at 43 days in July. While time to refinance increased from 41 days in June to 42 days, time to close a purchase loan remained flat at 43 days. FICO scores also remained the same in July at 724. This is up from a score of 723 in May.