Refi Volume Hits Six-Month High – NMP Skip to main content

Refi Volume Hits Six-Month High

Phil Hall
Nov 20, 2014
Freddie Mac ended the third quarter with $2.3 billion in both net income and comprehensive income, plus $3.6 billion of net interest income

To paraphrase Mark Twain … “Reports of refis’ death have been greatly exaggerated.” According to the latest Origination Insight Report released by Ellie Mae, refinancing activity grew four percent between September and October, accounting for 40 percent of overall mortgage volume—the highest level in six months. Aiding this increase is a faster closing time: The average time to close a refi dropped from 40 days to 39 days, according to the report.

But is the refi going to make a comeback and dominate the industry in the near-term future? In an interview with National Mortgage Professional Magazine, Jonathan Corr, president and chief operating officer at Pleasanton, Calif.-based Ellie Mae, noted that this is not the shape of things to come.

“Refi is taking up more of the volume of total loans,” Corr said. “But interest rates dropped and people are taking advantage of this opportunity.”

Indeed, Ellie Mae’s Origination Insight Report found that the average 30-year interest rate for all loans fell for the sixth consecutive month to 4.371 percent, the lowest average since July 2013. Corr stated that an increase in refi activity can be viewed as a seesaw effect to a decline in rates.

“We will see this little jump in activity if rates go below a certain threshold,” Corr said. “If rates go up, we will see the refi level stay.”

Looking ahead, Corr did not foresee refi returning to its dominant market position.

“The expectation is that rates will slowly drift back up. Not at a rapid pace, but at a pace that is expected. This is a bit of a blip, but I wouldn’t bet on this going forward,” Corr said.

Published
Nov 20, 2014
Homepoint Expands Refinance Program Offerings

Now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate.

Industry News
Nov 30, 2021
Non-QM Lender Deephaven Hires Business Development VP

Dallas-based Tim Fisher charged with growing Deephaven’s correspondent business In Texas and surrounding states

Industry News
Nov 30, 2021
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021
Servion Taps Sagent For Consumer-First Servicing Tech Stack

A 7-year deal between Servion Mortgage and Sagent will equip Servion with Sagent's tech stack for performing, non-performing, and consumer experience.

Tech
Nov 29, 2021
Guaranteed Rate's Banosian Funds $2B In Total Loan Volume

The mortgage industry shouldn't be surprised by Guaranteed Rate's top loan officer, Shant Banosian, funding $2 billion in total loan volume during a record-breaking year. After all, “The Billion Dollar Man” is one of the top 5 loan originators in the U.S.

Wholesale
Nov 29, 2021
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021