The percentage of refinances increased to 35 percent in January, up from 29 percent in December, according to Ellie Mae’s latest Origination Insight Report.
FHA refinances increased to 21 percent in January, up from 18 percent the prior month, and conventional refinances increased to 35 percent, up from 31 percent in December, the report found.
“The increase in refinances in January is likely due to seasonality, with lower purchase volume tied to the holiday season as well a modest drop in rates from November and December,” Ellie Mae President and CEO Jonathan Corr said in a release. “We anticipate that as we move into the traditionally busier spring months, the percentage of home purchases will increase relative to refinances.”
According to the report, the time to close all loans dropped to 45 days in January, down from 47 days in December. Time to close a purchase loan increased to 48 days, while time to close a refinance dropped to 38 days.
The 30-year note rate dropped from 5.17 percent in December to 5.01 percent in January, and overall FICO scores dropped two points from 726 in December to 724 in January, the report found.