Increase in ARM and Refi Shares Reflect Rising Interest Rates

Posted To: MND NewsWireThe share of loans that were for refinancing and those where borrowers opted for adjustable rate mortgages (ARMs) both ticked up in October , with the latter garnering the largest share in recent memory, 8.2 percent. This was a full percentage point higher than the September share. According to Ellie Mae’s Origination Insights Report, the split between refinancing and purchase loans jumped from 29/71 in September to 32/68 in October. Both VA and FHA showed an uptick in their refinancing activity. Closing rates for all loans increased to 72.2 percent in October, the highest point this year and up from 71.7 percent the previous month. Closing rates on refinances increased slightly, from 64.4 percent to 64.9 percent, and closing rates on purchases held steady at 76.4 percent for the second consecutive…(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.

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Michael Ayoub, Author NMLS ID 6631