WASHINGTON–Home purchase loans increased to a 57% share of all mortgage originations during February, up from 53% one month earlier, according to the latest Ellie Mae Origination Insight Report.
The Report notes, however, that while this share is up by five percentage points from the previous February, it remains well below the recent high for purchase mortgages of 65% in June 2016.
Ellie Mae said closing times also improved during February, decreasing to 46 days from 51 days in January for all loans. Similarly, refinances took an average of 47 days compared to 53 and purchase loans fell to 45 from 48 days.
According to the Elllie Mae data, conventional loans had a 63% share of the market, compared to 66% in January. FHA increased its share by two percentage points and VA by one point to 23% and 10%, respectively, the data show.
Also included in the Ellie Mae Origination Report:
- FICO scores for closed loans budged just a bit in February, to 720 from 722 in January. The average FICO score was 11 points lower than 2016’s high, which was hit in August and September, but was up just a slim one point from the beginning of 2016. Ellie Mae said 67% of all closed loans, 70% of purchase mortgages, and 64% of refinance borrowers had scores of 700 or more.
- Closing rates for all loans decreased from 72.2% in January to 70.6%. The rate for purchases decreased from 76.8% to 75.9% and for refinancing from 67.9% to 65.4%.