Ellie Mae: October Refis Show Strength
Ellie Mae, Pleasanton, Calif., said refinances accounted for the highest percentage of closed loans in October since March 2015.
The company’s monthly Origination Insight Report said the percentage of refinances reached 51 percent of closed loans in October; purchases accounted for 49 percent of total closed loans, dropping two percentage points from September.
Jonathan Corr, President and CEO of Ellie Mae, said the increase comes as interest rates ticked up slightly, with the 30-year note rate increasing to 3.94 percent for all closed loans, up from 3.93 percent in September. The 30-year note rate for FHA loans decreased slightly from 3.96 percent in September to 3.94 percent in October while the 30-year note rate for Conventional loans increased from 3.96 percent in September to 3.98 percent in October.
“Interest rates continued to decline in October which had homeowners reaching out to lenders as they look to save on their monthly mortgage payments,” Corr said. “We are seeing refinances surpass 50 percent of closed loans, which is proof that homeowners are taking advantage of the opportunity to lock in lower rates.”
Other October data:
–Time to close all loans rose slightly to 44 days in October, up from 43 days in September. The time to close refinances increased to 42 days, up from 39 days the month prior and the time to close purchases jumped one day to 47 days.
–The percentage of adjustable-rate mortgages on all loans increased to 5.0 percent, up from 4.7 percent the month prior.
–Closing rates on all loans held at 78.1 percent for the second consecutive month.