The housing market has slowed down somewhat this year, due in large part to the fact that consumers' tastes seem to be shifting away from the refinances that dominated the post-recession years, and toward purchases. That trend held more or less steady in August – the latest month for which data was available – indicating little change on a monthly basis.

For the month of August, purchases made up nearly 2 out of every 3 home loans closed by lenders, according to the latest Origination Insight Report from Ellie Mae. That's down very slightly from 67 percent in July, but up appreciably from 57 percent in the same month last year. As a result, that means refinances comprised 33 percent of the home loan market, up from 32 percent but down from 43 percent on those same respective timeframes.

Meanwhile, the average home loan extended to consumers during the month carried a loan-to-value ratio of 82 percent, the report said. The average borrower that received approval on them carried a FICO score of 727

"The closing rate in August was the highest since we began tracking this data three years ago: 61.1 percent for all loans and 65.1 percent for purchase loans," said Jonathan Corr, president and chief operating officer of Ellie Mae. "This was further indication that lenders are working every deal and making sure leads don't slip away. The time to close rose slightly last month, going up to 39 days from 37 in July, and the percentage of purchase loans remained in the high sixties."

A further breakdown
Of all loans closed throughout the month, 64 percent came from conventional lenders, unchanged on a monthly basis but down from 70 percent annually, the report said. Home loans backed by the Federal Housing Administration made up 1 in 5 home loans – also unchanged from July, but up slightly from August 2013's 18 percent – while those through the U.S. Department of Veterans Affairs comprised another 12 percent, a slight increase from 11 percent a month earlier.

With consumers' borrowing preferences apparently being shaped by overall affordability, it might be wise for lenders to look into ways to better connect would-be buyers with low-cost home loans. While there may be some perception of affordability being low, the fact remains that current levels are still quite favorable in comparison with historical norms.