Refinances reclaim some of the ground lost to purchases
Purchase loans are starting to lose a little ground to the refinance market.
The refinance share last month got a little higher than it was in June and rose to 35%, according to Ellie Mae's latest monthly report. The share of refinances in the market was 32% in May and in June, when Ellie attributed the lack of growth in purchase share to the scarcity of home inventory in the market.
The refinance share was last as high as 35% in April. A year ago, 37% of loans in the market were used to refinance existing mortgages.
"The market has been shifting from refis to purchases but we saw a pick-up in refinancing with lower rates," said Jonathan Corr, president and CEO of Ellie Mae, in a press release.
On average in July mortgage rates were at their lowest level since January, Ellie Mae noted. Rates rose significantly late last year after the U.S. election.
Closing timelines remained unchanged month-to-month at 43 days, according to Ellie Mae. The average credit score for all loans also remained stable at 724.
Ellie Mae's data is based on a sample of applications initially submitted through its origination system.