interest rates on 30-year fixed rate mortgages originated in December reached
an all-time low in ICE Mortgage Technology’s (formerly Ellie Mae’s) records, an
average of 2.93 percent and a 4-basis point decline from the November rate. The
company, in its monthly Origination Insight Report, said the note rate
for all three loan types it tracks, FHA, Conventional, and VA, were all below
3.0 percent for the second straight month. FHA and Conventional loans dropped
to 2.94 and 2.96 percent, respectively.
Each averaged 2.99 percent the prior month. The VA rate fell from 2.72 to 2.66
percent. Refinances continued to dominate at
60 percent of originations, down 1 percentage point from November but up from
46 percent a year earlier. The outsized share was skewed toward conventional
loans at 68 percent. Purchase loans accounted for 81 percent of FHA
originations and 70 percent of VA loans.