Ice Mortgage Technology (formerly
Ellie Mae) said that closed loans continued show declining note rates in January,
dropping from an average of 2.93 percent in December to 2.88 percent. The
decline occurred across all loan types. The 30-year rate on conventional loans dropped
to 2.91 percent from 2.96 percent and the 30-year rate on FHA loans declined by
8 basis points to 2.86 percent. The VA rate averaged 2.60 percent compared to 2.66
percent the prior month. As rates retreated, the percentage
of refinances continued to increase
, the ICE Mortgage Origination Report
said, representing 67 percent of closed loans, up from 60 percent in December
2020. The refinance share varied among lenders, from 74 percent for
conventional loans, to 36 percent for VA loans, and 24 percent for FHA. The FHA
refi share was up 5 basis points month-over-month while the refi share for each
of the other two increased 6 basis points.

 

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