Ellie Mae revealed that the percentage of refinances accounted for 51 percent of closed loans during the month, which is the highest percentage of refinances since March 2015, according to the October Origination Insight Report from Ellie.
Purchases accounted for 49 percent of total closed loans, dropping 2 percentage points from the month prior.
This comes as interest rates tick up slightly, with the 30-year note rate increasing to 3.94 percent for all closed loans, up from 3.93 percent in September, the report stated.
Other statistics of note in October included:
- The time to close all loans rose slightly to 44 days in October, up from 43 days in September. The time to close refinances increased to 42 days, up from 39 days the month prior and the time to close purchases jumped one day to 47 days.
- The percentage of adjustable rate mortgages on all loans increased to 5.0 percent, up from 4.7 percent the month prior.
- Closing rates on all loans held at 78.1 percent for the second consecutive month.
“Interest rates continued to decline in October which had homeowners reaching out to lenders as they look to save on their monthly mortgage payments,” Jonathan Corr, president and CEO of Ellie Mae, said in the report. “We are seeing refinances surpass 50 percent of closed loans, which is proof that homeowners are taking advantage of the opportunity to lock in lower rates.”