Purchase originations reached their highest share of the total number of loans closed in almost two years, according to the June Origination Insight Report from Ellie Mae.
For the month 65% of all closed loans were used for a home purchase, up from 62% the month prior. This is the highest percentage since August 2014, according to the Pleasanton, Calif.-based company. In June 2015, 61% of closed loans were for a purchase.
Refinances correspondingly dropped to 34% of closed loans from 37% in May, Ellie Mae said Wednesday.
However, the percentage of applications converting to a closed loan dipped to 69.6% from 70.6% a month earlier. Refinance application closing rates dropped 2.5 percentage points to 64.7%, while purchase application closing rates slipped to 73.7% from 74.5%.
The average time to close all loans increased month-over-month by a day to 46 in June — with purchase loans seeing the same exact increase. The time to close a refinance loan jumped three days to 47, and the time to close FHA loans increased by two days to 47. It also took 50 days to close VA loans in June, up from 49 the month before.
