Refis on the Rise

Refinances accounted for 47 percent of all closed loans last month, according to new data from Ellie Mae, which credited the activity to the 30-year note rate, which upticked to 3.760 in October from a historic low of 3.750 in September.

Within specific loan products, the percentage of FHA refinances increased to 21 percent in October from 19 percent in September, while VA refinances increased to 31 percent from 27 percent one month earlier. Conventional refinances inched up from 56 percent in September to 57 percent in October.

“We believe that homebuyers are taking advantage of the continued low rates to find monthly savings by refinancing their mortgages,” said Jonathan Corr, president and CEO of Ellie Mae.

Separately, the Federal Housing Finance Agency (FHFA) reported that 15,597 borrowers refinanced their mortgages through the Home Affordable Refinance Program (HARP) during the third quarter. HARP refinances represented two percent of total refinances during the third quarter, while 26 percent of HARP refinances in this period were for underwater borrowers seeking shorter-term 15- and 20-year mortgages.

The FHFA also noted that 242,512 borrowers were still eligible for HARP as of the end of the second quarter, with more than 60 percent eligible borrowers located in California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Ohio, Pennsylvania and Puerto Rico.