Refinancing activity increased in October, according to Ellie Mae’s recent Origination Insight Report. In fact, refinances across all types have shown a noticeable surge.
In its report released Wednesday, November 16, refinancing cases constituted 47 percent of all closed loans. From 19 percent last September, FHA loans rose to 21 percent. VA loans increased to 31 percent, a four-percentage rise from last month’s, while conventional loans increased one percent to 57 percent.
This continued increase in refinances amounted to the highest monthly record for all loans closed in 2016. The percentage mark hit 73 percent this month from 71.8 percent from the previous month. The refinance closing rate increased to 68 percent from September’s 66.4 percent while the purchase closing rate also increased to 77.2 percent; last year, it was 76.4 percent.
– average closing time for all loans remains the same as last month’s: 48 days
- average closing time for purchase loans is 46 days
- average closing time for refinances is 50 days
– average closing time for all FHA loans is 48 days
- average closing time for FHA loan purchases is 47 days
- average closing time for FHA loan refinances is 51 days
– average FICO score decreased to 730 from September’s 731
– average closing time for VA loans is 52 days
– median debt-to-income (DTI) ratio for all loans closed is at 24/37
– median loan-to-value (LTV) ratio remains at 78
While all this increase in refinance activity is ongoing, however, interest rates continue to rise up from their historic low records since the controversial Brexit. There is also a growing uncertainty as to whether the rates will remain low in the nation’s current political climate.
If you want to take advantage of the rates while they’re still low, today might be a good time to lock.Click to See the Latest Mortgage Rates»