Purchase applications once again gained steam in June, further cementing its growing demand over refinance applications.
According to the latest Origination Insight Report from Ellie Mae, purchase applications increased to 65% of all closed loans in June, up from 62% in May.
Refinance applications, on the other hand, represented 34% of closed loans in June, down from 37% in May.
It's important to note that the Ellie Mae report is for the month of June, and Brexit did not occur until the end of June.
Even though refinance applications surged in the wake of Brexit due to the sharp drop in mortgage interest rates, it is seen as an anomaly in what will likely be a purchase-driven market moving forward.
In a recent interview with HousingWire, Kasey Marty, executive vice president of secondary marketing with Guaranteed Rate, noted that although there was a high percentage of refinance activity after Brexit, each week since at Guaranteed Rate, purchase volume has steadily increased.
Overall, with both refinance and purchase applications included in the mix, this is the highest closed loan purchase percentage since August of 2014.
Other key details in the Ellie Mae report include the average time to close all loans increased to 46 days in June, up from 45 days in May.
Broken up by type, the time to close a purchase loan rose to 46 days in June, up from 45 days in May, while the time to close a refinance loan rose to 47 days in June, up from 44 days in May.
Similarly, Ellie Mae said that the average time to close FHA loans rose to 47 days in June, up from 45 days in May, as the time to close VA loans increased to 50 days in June, up from 49 days in May.
