Data from mortgage software firm Ellie Mae shows that the share of mortgage originations in October that were for refinancing increased by 1 percentage point
Data from mortgage software firm Ellie Mae shows that the share of mortgage originations in October that were for refinancing increased by 1 percentage point.
Refinance mortgages accounted for 39%, the highest percentage since February. Meanwhile, interest rates declined to 4.20%, a new low for the year.
“We are continuing to see borrowers take advantage of the lower interest rates as the refinance percentage increased to 39% of total loans in the month,” said Jonathan Corr, president and CEO of Ellie Mae. “We saw increases in October across all loan types with FHA refinances at 23%, conventional refinances at 46% and VA refinances at 32% of all closed loans.”
Ellie Mae’s Origination Insights also reveals that the percentage breakdown of all closed loans remained steady with conventional loans at 66%, FHAs at 20% and VAs at 10%.
Closing time for all loans was 43 days, unchanged from September.
The quality of borrowers’ credit also remained unchanged with an average FICO score on all closed loans of 724.
FHA purchase FICO scores dropped one point to 681 and FHA refinances increased one point to 650. Conventional refinance FICO scores rose one point to 732 and conventional purchase FICO scores held at 752. VA refinance FICO scores increased one point to 702 and VA purchase FICO scores also dropped a point to 708.
Refinance mortgages accounted for 39%, the highest percentage since February. Meanwhile, interest rates declined to 4.20%, a new low for the year.
“We are continuing to see borrowers take advantage of the lower interest rates as the refinance percentage increased to 39% of total loans in the month,” said Jonathan Corr, president and CEO of Ellie Mae. “We saw increases in October across all loan types with FHA refinances at 23%, conventional refinances at 46% and VA refinances at 32% of all closed loans.”
Ellie Mae’s Origination Insights also reveals that the percentage breakdown of all closed loans remained steady with conventional loans at 66%, FHAs at 20% and VAs at 10%.
Closing time for all loans was 43 days, unchanged from September.
The quality of borrowers’ credit also remained unchanged with an average FICO score on all closed loans of 724.
FHA purchase FICO scores dropped one point to 681 and FHA refinances increased one point to 650. Conventional refinance FICO scores rose one point to 732 and conventional purchase FICO scores held at 752. VA refinance FICO scores increased one point to 702 and VA purchase FICO scores also dropped a point to 708.
