Interest rates on mortgage loans in July reached their highest levels since the fall of 2014, according to the latest Origination Insight Report released by EllieMae. The average rate on a 30-year fixed-rate mortgage rose to 4.29 percent last month, up from 4.12 percent in June and its highest level since October 2014, when the average rate was 4.37 percent.
Ellie Mae’s data also showed that lenders’ share of purchase loan volume climbed to 63 percent, an increase of 22 points since February. Nearly two-thirds of loan applications, or 66.2 percent, closed in July, the highest level since Ellie Mae began tracking this data in August 2011. Meanwhile, the closing rate on purchase loans climbed above 70 percent for the first time in four years.
Despite the higher rates, the average FICO score on closed loans fell for the third consecutive month to 725, its lowest level since February 2014.
“Mortgage rates appear to be rising in anticipation of the Federal Reserve’s first rate increase since the global financial crisis,” said Jonathan Corr, president and CEO of Ellie Mae. “However, credit availability appears to be broadening, which is certainly good news for consumers and the housing market.”
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.