According to Ellie Mae’s Origination Report for February 2015, refinance activity continued to make gains for a second month in a row. Compared to January, refinances climbed by 8% and were 16% greater than February 2014. Refinance activity for FHA loans and conventional loans also saw month-over-month increases. Refinanced FHA loans saw the largest increase at 19%. Conventional refinances gained by 6%.
The number of days to close a refinance decreased in February. Dipping to 36 days from 39 days in January, Ellie Mae indicated that the latest number of days to close a refinance is “the lowest since [they] began tracking data in August 2011.”
For all loans, average mortgage interest rates for 30-year notes and adjustable-rate mortgages (ARM) declined compared to the previous month. The average 30-year note rate dropped to 4.008% from 4.154% and the average ARM fell to 4.0% from 5.1%. Jonathan Corr, Ellie Mae President and CEO stated, “The drop in the average 30-year fixed rate in last few months has kept lenders busy with increased refinance business. Considering the demand, the fact that lenders are taking fewer days to close the average refi loan is very good news.” Read more at http://bit.ly/1GzMsyN.