Purchase-loan share held steady month-to-month for the first time this year, even though it is still above year-ago levels in line with a seasonal decline, but growth remains in the forecast.
The share of closed purchase mortgages remained at 71% in July after a string of consecutive-month increases in the first half of the year, according to Ellie Mae's Origination Insight report. That's the
Last July, purchases made up 65% of closed loans in the market. Purchase share during 2017 peaked at 68% in June, but Ellie Mae is forecasting more month-to-month increases in the second half this year.
"The purchase market remained solid in July and as we see inventories rise, we might begin to see a transition to a buyer's market," Jonathan Corr, president and CEO of Ellie Mae, said in a press release. "The summer home buying season is still in full swing and while interest rates have risen, we expect to see a continued increase in purchase percentages."
The lowest purchase share seen during both 2017 and this year was during the seasonally weak month of January. That share was 55% in 2018 and 53% last year.
The adjustable-rate mortgage share, which tends to rise as mortgage interest rates do, was up compared to last year at 6.6%, but a little lower than the previous month. A year ago in July, ARMs represented 5.7% of all closed loans and in June their share was 6.9%.
