Purchase loans as a percentage of lenders’ overall mortgage volume eclipsed 50 percent in April, according to the latest Origination Insight Report released by Ellie Mae. Last month’s overall purchase share of 52 percent represented a 6 percent jump from March. Here’s what happened:
According to the latest report, the average closing period for all loans rose from 44 to 45 days. Meanwhile, the overall closing rate on all loans exceeded 65 percent for the first time since reporting began in August 2011, reaching 65.2 percent.
“An improving economy and ongoing attractive rates seem to be contributing to the rise in purchase percentage as we move full speed into the spring buying season,” said Jonathan Corr, president and CEO of Ellie Mae.
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.