Ellie Mae: Refis Surge as Rates Dip to 2017 Low

Ellie Mae, Pleasanton, Calif., said the percentage of refinances climbed to 38 percent of total loans in September as interest rates dipped to 4.21 percent, the lowest rate in 2017.

The company’s September Origination Insight Report also noted time to close a refinance also dropped to 40 days, the shortest time to close a refinance since February 2015.

“The increase in refinances was most likely due to interest rates on closed loans dipping,” said Jonathan Corr, president and CEO of Ellie Mae. “Additionally, time to close a refinance dropped to 40 days as more lenders leverage technology to close loans faster.”

Other statistics:

–The percentage breakdown of all closed loans shifted slightly as conventional loans rose to 66 percent, FHA loans shrank to 20 percent and VA loans held steady at 10 percent.

–The average FICO score on all closed loans remained steady at 724 in September, as did FHA refinance FICO scores at 649. FHA purchase FICO scores dropped one point to 682. Conventional refinance FICO scores rose one point to 731 and conventional purchase FICO scores held at 752. VA refinance FICO scores dropped a point to 701 and VA purchase FICO scores also dropped a point to 709.

–Closing time for all loans increased to 43 days in September, up from 42 days the month prior.

–The percentage of adjustable-rate mortgages dipped to 5.5 percent, down from 5.7 percent in August.