Refinance Activity Increased in October: Ellie Mae

Refinance activity rose as a share of overall closed loans in October, according to Ellie Mae's Origination Insight Report.

Refinances represented 47% of all closed loans, Ellie Mae reported Wednesday. And the share of refinances rose across many loans types.

For FHA loans, refinances increased from 19% in September to 21% a month later. Similarly, the share of refinances increased by four percentage points month over month to 31% for VA loans and by one percentage point to 57% for conventional loans.

Bolstering refinance activity was the low 30-year interest rate, which rose to 3.76% from the historic low of 3.75% recorded in September.

"We believe that homebuyers are taking advantage of the continued low rates to find monthly savings by refinancing their mortgages," Ellie Mae President Jonathan Corr said in a news release.

Economists predict that interest rates will rise in 2017 despite the presidential election results, which would put a damper on refinance activity.

October's continued low rate also pushed closing rates to their highest level in 2016 at 73%. For refinances, the closing rate rose to 68% in October from 66.4% in September, while the purchase closing rate increased to 77.2% from 76.4% over that same timespan.

The average time to close all loans, meanwhile, remained steady at 48 days. The average FICO score also fell from 731 to 730.

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