Conventional loan refinances increased from 53 percent in December
to 55 percent in January, while VA and FHA refinances declined slightly over the same period. The time to close all loans in January was 48 days, unchanged from December, while closing rates on all loans increased to 78.2 percent in January, up from 77.8 percent the month prior. Closing rates on purchases was 80.7 percent and closing rates on refinances was 75.8 percent.
"The start to 2020 saw interest rates decline and refinances hold steady, driving an increase in our closing rate to 78.2 percent in January," said Jonathan Corr, president and CEO of Ellie Mae. "All indicators show that we will continue to see a healthy housing market in 2020 as more Millennials look to purchase homes and interest rates remain at historic lows driving refinance activity. We do expect 2020 to bring some challenges for homebuyers, not because of what they can afford, but rather what they can find due to lagging inventory."