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Higher FICO Scores Indicate Lenders are Being More Selective
Thursday, October 22, 2020
The refinancing share of originations increased again in
September, rising 2 points to 58 percent of all loans. Ellie Mae's Origination
Insight Report for September shows the increase came almost inclusively in
conventional loans where the refi share jumped 5 points to 66 percent. The refinancing
share of VA loans rose 1 point to 20 percent while the FHA share was unchanged
at 15 percent. The reciprocal share, 42 percent, of purchase mortgages is a significant drop from 50 percent in
January, but Ellie Mae notes it is well above the May low of 35 percent of all
closed loans. The increase in refinancing was undoubtably in
response to a further decline in the 30-year note rate. The average for all
loans was 3.00 percent, down from 3.09 percent in August. Ellie Mae said this
rate was the lowest since it began tracking the data in 2011. The average for
conventional loans was 3.02 percent; 3.01 percent for FHA loans and 2.78
percent for VA loans.
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