The proportion of mortgages made to borrowers purchasing property versus refinancing existing loans jumped 6% in May 2015, but still lagged compared to where it had been in May 2014, according to mortgage software firm Ellie Mae.
The company's Origination Insight Report for May 2015 revealed 58% of mortgages originated by lenders using its Encompass mortgage origination platform went to borrowers buying property, while 42% went to borrowers refinancing previously existing loans.
This compared favorably with April's percentage (52%) and the percentage from November 2014 (54%), but lagged compared to the percentage from May 2014 (66%).
Loans backed by the Federal Housing Administration accounted for 24% of the mortgages originated in both April and May, while loans made through the Veterans Administration accounted for roughly 10%, the firm said.
Closing times for both purchase and refinance mortgage loans moved up significantly from one year before, the firm said. In May 2014, both purchase and refinance mortgage loans closed in an average of 40 days, but in May 2015, the average refinanced home loan took 49 days to close and the average loan to purchase property took 43 days to close, the firm reported.
"Our May data reflects a home buying season in full swing," said Jonathan Corr, president/CEO of Ellie Mae. "While the share of purchase loan volume is lower than it was one year ago, lower mortgage rates has given some help to refinancing volumes and share."
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