In June purchase credits finally regained the seat of the Catbird and displaced the share of refinancing credits 3 percentage points. ICE Mortgage Technology reports that 51 percent of all mortgages issued during the month were for home purchases. This is the first time since December 2019 that eclipsed refinances have been purchased in the ICE Origination Insight Report. Refinancing made up 48 percent of the total, while other types of loans made up 1 percent of the volume.
Refinancing continued to make up the majority conventional Loans, 53 percent versus 46 percent for purchases. For FHA and VA loans, the purchase share was 79 percent and 70 percent, respectively.
Conventional Loans accounted for 78 percent of all additions during the month, up from 79 percent in May. The proportions of FHA and VA loans were unchanged from the previous month at 11 percent and 7 percent, respectively.
“While we are still seeing a strong refinancing market, including continued growth in cash-out refinances, the traditional summer buy market is clearly evident in the data,” said Joe Tyrrell, president of ICE Mortgage Technology. “These numbers are evidence of the strong and resilient demand for residential property.”
The average interest rate on 30 year loans that closed in June was 3.22 percent. In May the rate was 3.27 percent.
The ICE report also notes that the
average closing time all credits decreased to 49 days from 53 days in May. The average time to complete a refinance was 48 days versus 55 days in the previous month, but the average time to complete a purchase increased by one day to 51 days.
That Closing price for all loans fell from 76.9 percent in May to 75.3 percent, with the closing rates for refinancing from 77.0 percent to 74.6 percent and for purchases from 77.0 percent to 76.3 percent. The company calculates the closing prices from a sample of loan applications submitted 90 days earlier, in this case from March 2021.
ICE’s Origination Insight Report draws its application data from a large sample of approximately 80 percent of all mortgage applications initiated on its proprietary platform. The company says the report is a strong indicator of the underwriting standards being used by lenders across the country.