Latest Ellie Mae Origination Insight Report Suggests There Still May Be Life in Refis
Percentage of refinances increases for first time in 2014, though closing rate on mortgage refinancings falls nearly 6 percent
PLEASANTON, Calif. – October 23, 2014 – Refinancings as a percentage of overall mortgage volume jumped 3 percent from August to account for 36 percent of closed loans in September, 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. The September 2014 report also found the closing rate on mortgage refinancings fell nearly 6 percent to 48.3 percent in September, the lowest since February.
The Origination Insight Report mines its application data from a robust sampling of approximately 57 percent of all mortgage applications that were initiated on the Encompass® origination platform. The Origination Insight Report is considered a strong proxy of the underwriting standards that are being employed by lenders across the country.
“It appears there may be life left in the refi market, as a number of consumers are still taking advantage of recovering equity in their homes and low interest rates to knock down their mortgage payments,” said Jonathan Corr, president and COO of Ellie Mae.
The percentage increase in refinancing activity was the first monthly increase in 2014, the report found. Among other findings in the report: