Mortgage Refinance Share Rose Further in February, According to Ellie Mae Origination Insight Report
Average refinance days to close drops to shortest time since Ellie Mae began tracking data in 2011
PLEASANTON, Calif. – March 18, 2015 – Mortgage refinancing as a share of overall loan volume jumped 8 percent in February to comprise 59 percent of lenders’ loan volume, according to the latest Origination Insight Report released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Meanwhile, the average time to close a refi loan fell to 36 days, the lowest level since Ellie Mae began tracking this data in August 2011.
The average interest rate for a 30-year fixed rate mortgage fell from 4.154% to 4.008%, the lowest level in two years, according to Ellie Mae’s data. The average interest rate for 30-year fixed FHA loans fell below 4% for the first time since June 2013.
“The drop in the average 30-year fixed rate in last few months has kept lenders busy with increased refinance business,” said Jonathan Corr, president and CEO of Ellie Mae. “Considering the demand, the fact that lenders are taking fewer days to close the average refi loan is very good news.”
The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass® origination platform. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.
MONTHLY ORIGINATION OVERVIEW FOR FEBRUARY 2015