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Lower Rates Helped Raise January Closing Rate
Thursday, February 20, 2020
The
slight drop in mortgage rates in January stabilized refinance originations
according to the January Origination Insight Report from Ellie Mae. The 3
basis point dip to an average rate of 3.96 percent kept the refinancing share
of closed loans at 46 percent, unchanged from December. Conventional loan refinances increased from 53 percent in
December to 55 percent in January, while the refinance share of VA and FHA loans
declined by 4 and 3 percentage points respectively. Conventional loans accounted for 71
percent of all loans closed during the month, up 1 point. FHA's 16 percent
share was 1 point lower than in December as was the 8 percent share of VA
loans. Adjustable rate mortgages had a 6.3 percent share, up a point from
December.
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