PLEASANTON, Calif. If lending trends are any indication, spring has definitely sprung, according to Ellie Mae’s “Origination Insight Report” for April.
“The spring buying season appeared to be in full bloom in April, with the percentage of closed purchased loans reaching 42% last month, up from 38% in March 2013 and 32% in February 2013,” said Ellie Mae President Jonathan Corr. “The last time purchase loans broke the 40% mark was back in July 2012.
Ellie Mae’s report draws its data and insights from a sampling of loan applications that flow through the firm’s Encompass360 mortgage management software and Ellie Mae Network, representing more than 20% of all originations in the U.S.
Among the other findings:
* Average FICO scores for approved loans decreased slightly from 743 in March to 742 in April.
* Pull-through closing rates dropped slightly from 55.1% in March to 53.2% in April. Ellie Mae suggested this may be a reaction to interest rates, which had been climbing for the past five months and then fell in April.
* Mortgage refis were down from 62% in March to 58% in April.
* Mortgage purchase loans were up from 38% in March to 42% in April.
* Average ARM rate was 3.2%, up from 2.5% in March.
* Average 15-year rate was 15.3%, down from 15.9% in March
* Average 30-year rate was 3.808%, down from 3.813% in March.
* Average Loan-to Value was 81 for closed loans, 85 for loans that were denied.
* Average Debt-to-Income was 23/35 for closed loans, 28/45 for loans that were denied.
