As interest rates sunk to their lowest percentage since January 2013, the percentage of refinances in March continued to spike upward, according to the latest Origination Insight Report from Ellie Mae.
Ellie Mae said the 30-year rate on all loans in March dropped to 3.65 percent, down from 3.86 percent the month prior. As rates dropped, the percentage of refinances increased to 55 percent of closed loans, up from 51 percent in February and 50 percent in January.
“Interest rates continued to decline into March, driving the growing share of refinances for another month,” Ellie Mae President and CEO Jonathan Corr said in a release. “Despite the impacts of the coronavirus and stock market fluctuations, our lenders are leveraging technology to manage borrower demand for refinances while taking into account the health and safety of all players in the mortgage origination process.
“With digital solutions for homebuyers and originators like online applications, remote online notarizations, homeowner-guided appraisals and eClosings, our lenders are able to minimize disruptions to their operations and limit in-person interaction,” Corr said.
During March, the time to close all loans decreased to 40 days, down from 43 days in February. Closing rates on all loans decreased slightly to 78 percent in March, up from 78.3 percent the month prior, the report found.