Last month also saw FHA refinances taking up 21 percent of that sector’s originations, up from 18 percent in the previous month, while conventional mortgage refinances increased from 31 percent in December to 35 percent in January. However, Ellie Mae President and Chief Executive Officer Jonathan Corr cautioned this could be a seasonal aberration.
“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 Corr. “We anticipate that as we move into the traditionally busier spring months, the percentage of home purchases will increase relative to refinances.”
Ellie Mae also reported that the time to close all loans fell from 47 days in December to 45 days in January, while overall FICO scores dipped from 726 in December to 724 in January.