Driven by historically low rates, the refinance share of mortgage activity crossed the halfway mark in October, according to Ellie Mae’s Origination Insight Report.
The refinance share reached 51% – the highest share since 2015 – according to the monthly report.
The average rate for a 30-year fixed rate mortgage increased slightly to 3.94%, up from 3.93% in September.
The average time to close all loans increased to 44 days, up from 43 days.
The average time to close a refinance increased to 42 days, up from 39 days the month prior, while the average time to close purchase loan increased to 47 days, up from 46 days.
The adjustable-rate mortgage (ARM) share of activity increased to 5.0%, up from 4.7% the month prior.
The closing rate for all loans held at 78.1% 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,” says Jonathan Corr, president and CEO of Ellie Mae, in a statement. “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.”
The Origination Insight Report mines data from a sampling of approximately 80% of all mortgage applications that were initiated on the Encompass all-in-one mortgage management solution.