Refi Market Holding Steady As Rates Continue Downward Trend
With interest rates continuing their downward trend, mortgage refinances have continued to come in at a steady pace, as Ellie Mae's Origination Insight Report showed a 0.05% decline in interest rates on all closed from April to May 2020.
"Interest rates continued to decline in May, but we are seeing signs of refinances leveling out, as the percentage of closed refinances held at 65% for the second month," said Jonathan Corr, president and CEO of Ellie Mae. "As we enter the summer months that typically bring a busier purchase market, we will watch to see if the numbers shift further as homebuyers continue to take advantage of low rates and a loosening of inventory after a tight March and April driven by the shelter in place."
According to the report, the 30-year rate on conventional loans fell from 3.48% to 3.44%, the 30-year rate on FHA loans fell from 3.56% in April to 3.45% in May. Ellie Mae's report also stated that the time to close all loan increased to 45 days in May, up three days from the previous month.
Click here to read more about Ellie Mae's latest Origination Insight Report.