The 30-year note rate dropped in March to 4.77 percent, down from 4.86 percent in February and 5.01 percent in January, according to the latest Origination Insight Report from Ellie Mae.
The drop in the 30-year note rate for the third consecutive month also was accompanied by an increase in the percentage of refinances in March to 35 percent, up from 34 percent the month prior, Ellie Mae said.
“As we enter the busy spring homebuying season, we are seeing activity tick back up across the board with the 30-year note rate decline,” Ellie Mae President and CEO Jonathan Corr said in a release. “We will continue to watch closing rates as they have stayed at or above 75 percent through the first quarter of 2019, a possible indication of buyers’ conviction.”
During March, the percentage of FHA refinances increased to 23 percent, up from 20 percent in February. Ellie Mae said time to close all loans was 42 days in March, down from 43 in February and 45 in January. The time to close a purchase loan dropped to 45 days in March, down from 47 in February and 49 in January.
Additionally, the percentage of adjustable rate mortgages in March decreased to 7.4 percent, down from 7.6 percent in February.