The refi boom of the last few years may be finally going bust, as mortgage lenders are reporting that purchase loans comprise almost two-thirds of their overall mortgage volume, according to Ellie Mae.

The mortgage industry software provider’s latest Origination Insight Report found that purchase loan activity climbed 3 points to account for 61 percent of lenders’ loans, marking the first time that purchase loans have reached 60 percent since October 2014.

Last month, Ellie Mae reported that purchase loans rose 6 points from May to a 58 percent market share. In April, refinance activity was at its highest level of the year.


In addition, lenders’ closing rate on all purchase loans rose to 69 percent, which is the highest level reported by Ellie Mae since it began tracking this data in August 2011.

“The improving closing rate is a continued sign that borrowers are being approved and following through with purchases,” said Jonathan Corr, president and CEO of Ellie Mae.

Mortgage originations are likely up due to low interest rates, and the likelihood that interest rates will rise before the end of the year. According to Ellie Mae’s report, the average 30-year rate on a closed loan rose from 4.01 percent to 4.11 percent. The data also showed that the average FICO score on a closed loan in June fell three points to 727, the lowest of the year.

“With a surging housing market and U.S. home sales at their highest level in years, lenders remained busy in June,” Corr said.

The Origination Insight Report mines its application data from a sampling of approximately 66 percent of all mortgage applications that were initiated on Ellie Mae’s Encompass mortgage management solution.

Email Amy Swinderman.

Inman Connect San Francisco is right around the corner — register now and save $200!

Start Inman Connect SF off right! Choose from three powerful events on Aug. 4. Reserve your spot now for Agent Connect, Broker Connect and Tech Connect.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription