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Refis Dominated April Closings as Lenders Tackle Constant Changes
Thursday, May 21, 2020
Interest rates on closed loans continued
to decline in April, falling from 3.65 percent in March to 3.48 percent
according to the Origination Insight Report from Ellie Mae. That
prompted another surge in refinancing, with that portion of originations
jumping from 55 percent in March to 65 percent. The refinancing share of
conventional loans also rose 10 percentage points to 73 percent. The share of conventional loans also
surged, from 76 percent to 81 percent and continuing a trend that began in
January. Conventional loans accounted for 71 percent of originations that
month. The April share of FHA loans dropped 3 points to 10 percent in April and
the VA share dipped to 1 point to 6 percent. The time to close all loans increased
from 40 to 42 days, although refinancing time lengthened by four days to 39.
Purchase loans required an average of 46 days, one more than in March.
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