Refinances Account for Nearly Half of All Closed Loans

Phil Hall

Oct 16, 2019

Refinancing activity surged in September and comprised 49 percent of all loans in September, up from 43 percent in August, according to data from Ellie Mae.

While refinancing was in ascension, purchase loan percentages dropped to 51 percent of all total loans, the lowest level since March 2015. Ellie Mae also noted September was the first month in 2019 when conventional refinances rose above the 50 percent level for total conventional loans, accounting for 55 percent of conventional loans in the month while conventional purchases dropped to 45 percent. FHA refinances increased by one-percentage point to 28 percent of all closed FHA loans and VA refinances saw a three-percentage point gain to 37 percent.

During September, the time to close all loans rose to 43 days, up from 42 days the month prior. The time to close a refinance loan held at 39 days while the time to close a purchase loan increased from 45 days in August to 46 days in September. The average FICO score for all closed loans increased to 737, up from 734 the month prior.

“The continued decline in interest rates is driving the refinance revitalization that is now accounting for almost 50 percent of all closed loans in the month,” said Jonathan Corr, president and CEO of Ellie Mae. “The market is still anticipating further rate cuts by Treasury, so lenders should capitalize on leveraging technology to ensure they are responding to the growing number of refinance opportunities that come their way.”

Link copied

Published

Oct 16, 2019

Analysis and Data

New Home Sales Dip In August

Builders offer increased incentives to attract buyers; First-time homeowners gravitate toward new builds as inventory constraints persist.

The U.S. Census Bureau and the Department of Housing and Urban Development (HUD) jointly report that sales of new single-family homes in August 2023 experienced a decline. The sales reached a seasonally adjusted annual rate of 675,000, marking an 8.7% drop from the revised J...

Analysis and Data

Home Prices Reach New Highs In July 2023

Chicago, Cleveland, and New York drive robust growth; S&P CoreLogic Case-Shiller Indices and the FHFA report a consistent positive trajectory despite regional disparities.

U.S. home prices have showcased an upswing in July 2023, according to both the S&P CoreLogic Case-Shiller Indices and the Federal Housing Finance Agency.  According to the S&P CoreLogic Case-Shiller Indices, 19 out of the 20 significant metro markets reported a...

Nov

California Mortgage Expo – Pasadena

Pasadena, CA

More from

Industry News

Layoffs At Better.com

After a rocky market debut, Better.com has laid off staff.

Industry News

Sep 25, 2023

CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Industry News

Sep 19, 2023

Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Industry News

Sep 18, 2023

FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Industry News

Sep 11, 2023

Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Industry News

Sep 11, 2023

If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities