The percentage of refinance loans inched up slightly in October as interest rates dipped to a new 2017 low, according to Ellie Mae’s latest Origination Insight Report (OIR).
The OIR found refinances climbed 1 percent to 39 percent of total loans in October. Ellie Mae attributed the small increase in the percentage of refinances to the decrease in interest rates to 4.20 percent.
“We are continuing to see borrowers take advantage of the lower interest rates as the refinance percentage increased to 39 percent of total loans in the month,” Ellie Mae President and CEO Jonathan Corr said in a release accompanying the report. “We saw increases in October across all loan types, with FHA refinances at 23 percent, conventional refinances at 46 percent and VA refinances at 32 percent of all closed loans.”
Ellie Mae also reported time to close a refinance stayed steady at 40 days, which was the shortest time to close a refinance since February 2015.
During October, conventional loans accounted for 66 percent, Federal Housing Administration loans accounted for 20 percent, and Veterans Affairs loans were 10 percent of all closed loans.
According to the OIR, the average FICO score on all closed loans during October was 724. Closing time for all loans averaged 43 days for the second straight month.