The refinance transaction peaked out from the negative column recently. According to the Mortgage Bankers Association the Refinance Index on Oct. 22 increased 23 percent from the previous week. According to MBA’s Chief Economist Mike Fratantoni, this refinance application volume reaches the highest level since November 2013, and as a result the average loan balance for refinance applications increased to $306,400, the highest level in the survey’s history.
The refinance share of mortgage activity increased to 65 percent of total applications, the highest level since December 2013, up from 59 percent the previous week, MBA’s weekly survey said.
According to Ellie Mae’s Origination Insight Report, this is the first increase in 2014, but the closing rate on mortgage refinancing fell almost 6 percent, to 48.3 percent, the lowest since February.
“It appears there may be life left in the refi market, as a number of consumers are still taking advantage of recovering equity in their homes and low interest rates to knock down their mortgage payments,” Ellie Mae President and Chief Operating Officer Jonathan Carr said.