Refinances among millennial borrowers accounted for 46 percent of total closed loans in January, on par with December numbers, according to the Ellie Mae’s latest Origination Insight Report.
Ellie Mae said conventional loan refinances increased from 53 percent in December to 55 percent in January, while VA and FHA refinances declined slightly from the month prior.
“The start to 2020 saw interest rates decline and refinances hold steady, driving an increase in our closing rate to 78.2 percent in January,” Ellie Mae President and CEO Jonathan Corr said in a press release. “All indicators show that we will continue to see a healthy housing market in 2020 as more millennials look to purchase homes and interest rates remain at historic lows driving refinance activity. We do expect 2020 to bring some challenges for homebuyers, not because of what they can afford but rather what they can find due to lagging inventory.”
According to the report, the time to close all loans in January remained at 48 days for the second consecutive month. Time to close on refinances and purchases each was 48 days in January.
Ellie Mae said closing rates on all loans increased to 78.2 percent in January, up from 77.8 percent in December. Closing rates in January on purchases was 80.7 percent and closing rates on refinances was 75.8 percent.
During the month, FICO scores on all closed loans increased slightly from 735 in December to 738 in January.