It hasn’t exactly been a scramble, but homeowners have
stepped up their refinancing activity over the last two months as they saw
interest rates begin a slow but steady march higher. 
The February Origination Insights Report
from ICE Mortgage Technology shows the refinancing share of all loans
originated during the month moved 1 point higher to 68 percent. This is an 8
point increase from December’s 60 percent share.
The conventional loan share of
refinancing is up 7 points over the last two months. ICE says that a 68 percent
refinancing share is a figure not seen since December 2012.

The 30-year rate for all closed loans and conventional loans rose 1 basis
point each to 2.89 percent and 2.92 percent, respectively compared to the prior
month. Thirty-year rates for FHA loans held steady at 2.86 percent and VA loans
were unchanged at 2.60 percent. 

“Homeowners continue to take steps to refinance while rates remain low,”
said Joe Tyrrell, president of ICE Mortgage Technology. “In February, that
resulted in borrowers taking advantage of refinancing more than they have in nearly
a decade.” 

Added Tyrrell, “We also saw days to close a loan shorten in February, as
lenders continue to utilize technology to manage high loan volumes and
streamline workflow efficiencies.” 

The closing timelines did shorten significantly, down for all loans from 58
days in January to 53 in February. Processing time for refinances took an
average of 52 days, down from 59 the previous month, and purchase times dropped
4 days to 53. Similar efficiencies were seen across conventional, FHA, and VA
originations.

The closing rate for all loans rose 2 basis points to 76.4 percent. The rate
for refinancing jumped almost 2 full points to 76.3 percent while the rate for purchase
loans dropped from 78.9 percent to 77.1 percent. ICE computes closing rates
from a sample of applications submitted 90 days prior-or the November 2020
applications.

The Origination Insight Report is derived from a sampling of
approximately 80 percent of all mortgage applications that were initiated on
the ICE lending platform. The company says its report is a strong proxy of the
underwriting standards employed by lenders across the country.

By Jann Swanson , dated 2021-03-18 13:30:03

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Courtesy of Mortgage News Daily

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