Home Loan Originations Increase for Third Straight Month

For the third consecutive month, loans that originated for purchasing homes have increased. According to Ellie Mae’s Organization Insight Report for April, these loans made up for 42% of total loan originations, compared to 38% in March and 27% in January. Of these loan originations, 68% were conventional loans and 22% were Federal Housing Association (FHA) loans. That is a 2% decrease in conventional loans and a 1% decrease in FHA loans from the previous month.

According to the report, 15.3% of all mortgage loans were fifteen-year mortgages, and adjustable-rate mortgages made up just 3.2% of the total. Further, loans closed an average of 46 days — matching last summer’s record low — while it took an average of 47 days for refinances and 44 days for purchases.

Ellie Mae reviewed some samples of loan applications initiated in January to calculate April’s closing rate to be 53.2%, down just slightly from 55.1% in March in order to determine the importance of lender “pull-through.” The reason for this small decrease may be higher interest rates in April as compared to the interest rates of March.


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