The closing rate for home purchases jumped to open the year, boosted by the continuation of falling mortgage loan rates, according to Ellie Mae’s Origination Insight Report.
The decrease in mortgage rates also led to a 46 percent refinancing share of closed loans in January. The number for conventional refinancing stood higher, at 55 percent, in the same month.
The refinance share of other loans, such as VA and FHA, saw a small decline.
Here are some other highlights from the Origination Insight Report:
- Conventional loans made up 71 percent of all loans closed.
- FHA’s accounted for 16 percent.
- Adjustable-rate mortgages held a 6.3 percent share.
- It took about 48 days on average to close on both refinance and purchase loans in the month of January.
As consumers continue to enjoy low interest rates, closing rates for home loans are also on the rise.
The market indicators show that future homebuyers may continue to have plenty of opportunities. Real estate forecasters also envision more millennials entering the market and increased refinance activity.
The Origination Insight Report covers data from a large sample of mortgage applications.
If you and your family have your eyes set on a home in the Seattle/Renton/Tacoma areas, let our experienced, local home loan professionals assist you.
If you’re thinking about buying a home with an FHA plan, or to take advantage of the historically low interest rates to refinance your home, we have the tools and expertise to help.
Let 2020 be the year you reach your potential by fulfilling your dreams of homeownership and maximizing your investment.