Drop in Home Purchase Mortgages in August

PMI

The share of home purchase loans among all mortgages originated in August was 66%, according to the Origination Insight Report for this month of 2014 compiled by Ellie Mae. It declined from 67% in July.

Even though the share of home purchase loans decreased on a monthly basis, it remained higher than a year ago when it was 57%. The share of mortgage refinance deals rose to 33% in August from 32% in July. It was 43% in August 2013.

The share of conventional mortgage loans originated in August was 64%. It remained uncharged from July. However, it experienced a decline of 6% over the past year. In August 2013, it was 70%. The share of FHA loans was 20% in August. It did not undergo a change on a monthly basis. It rose by 2% from August 2013 when it was 18%.

The mortgage closing rate reached 61.1% in August. This is its highest level since Ellie Mae began producing its Report in 2011. The closing rate rose from 57.7% in July.

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The average time needed to close a mortgage in August was 39. It rose from 37 days in July. One year ago it was 41 days. The average time necessary to close a mortgage refinance deal in August was 39 day while the time needed to close a home purchase loan was 38 days. The closing times in July were 37 and 38 days respectively. In August 2013, they were were 41 and 42 days respectively.
The average borrower FICO score for closed first-lien mortgages was 727 in August. The average FICO score of applicants who were denied a home loan during the month was 695. The average loan-to-value ration of approved loans was 82% while the average LTV of denied loans was 81%. The average borrower debt-to-income ratio for closed loans was 24/37. For denied mortgage loans, it was 28/43.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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