Refinance activity started out the year on a strong note according to Ellie Mae’s Origination Insight Report for January 2015. Analyzing a sample of closed loan applications from their Encompass software, Ellie Mae determined that 51% of all loan originations in January were refinances. Compared to the same time last year, the refinance share of loan activity had increased by 8% reaching the “highest level since 2013.” Ellie Mae’s President and CEO, Jonathan Corr, said, “Many home owners who put off refinancing over the past year because they did not have equity in their homes are getting a second chance in 2015. Low rates and the decision by the FHA to lower the mortgage insurance premium (MIP) are good news for the purchase market as well.”
Interest rates also started out the year lower than the interest rates at the beginning of 2014. The average 30-year note rate for all loans in January dipped to 4.154% from 4.723% in January 2014. Additionally, adjustable rate mortgage interest rates declined to 5.1% from 7.2%, and 15-year mortgage interest rates declined to 10.8% from 15.0%, from the same time last year. Read more at http://bit.ly/1BophJJ.