January Refi Volume Jumps

February 22, 2019

Ellie Mae, Pleasanton, Calif., said home refinances jumped to 35 percent of originations in January, buoyed by lower holiday volume and lower interest rates.

The company’s monthly Origination Insight Report said the percentage of refinances increased to 35 percent in January, up from 29 percent in December. FHA refinances increased to 21 percent in January, up from 18 percent in December, while Conventional refinances increased to 35 percent, up from 31 percent the month prior.

“The increase in refinances in January is likely due to seasonality with lower purchase volume tied to the holiday season as well a modest drop in rates from November and December,” said Jonathan Corr, president and CEO of Ellie Mae. “We anticipate that as we move into the traditionally busier spring months, the percentage of home purchases will increase relative to refinances.”

Other January data:

–Time to close all loans dropped to 45 days in January, down from 47 days in December. Time to close a purchase loan increased to 48 days, while time to close a refinance dropped to 38 days.

–The 30-year note rate dropped from 5.17 percent in December to 5.01 percent in January.

–The percentage of adjustable-rate mortgages decreased from 9.2 percent in December to 8.6 percent in January.

–Overall FICO scores dropped two points from 726 in December to 724 in January. Loan to value decreased to 77 and DTI held at 26/39.