Posted To: MND NewsWire

A 10-basis point drop in the average interest rate of closed loans drove up the share of refinances in February. Ellie Mae’s Origination Insight Report said the average rate for all loans closed on its system was 3.86 percent during the month while conventional loans dipped from 4.03 percent to 3.89 percent and FHA loans from 3.91 to 3.87 percent. The rate for VA loans declined 2 basis point to 3.62 percent. In response, the share of loans that were for refinancing increased from 46 to 48 percent. The distribution of loans across product types shifted slightly from January. Conventional loans gained 3 points to 74 percent of the total and FHA loans dropped from 16 percent to a 14 percent share. VA loans were unchanged, accounting for 8 percent of transactions. The time to close all loans declined…(read more)

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Source: Mortgage News Daily