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Purchase Applications Hit 10 Month High

The percentage of loans originated for purchasing homes increased again in April, the third consecutive month they have done so. According Ellie Mae's Origination Insight Report for April, those loans made up 42 percent of the total originations during the month compared to 38 percent in March and 27 percent in January. It was the largest market share since July 2012 when purchase mortgages also made up 42 percent of the total. The average interest rate on a 30 year fixed-rate mortgage in April was 3.808 compared to 3.908 for all loans closed in 2012.

by Jann Swanson

FHA loans made up 22 percent of originations and Conventional loans 68 percent compared to 21 percent and 70 percent respectively in March. Fifteen-year mortgages made up 15.3 percent of all mortgages and adjustable rate mortgages had a 3.2 percent share, the highest since last July. Ellie Mae's report draws its data from the three million originations that are handled by its mortgage management software and network, more than 20 percent of the U.S. total.