The latest report from Ellie Mae revealed that refinances were up to a 4-year high in September 2019. This matches reports from Wells Fargo, Citigroup and JPMorgan Chase, which all showed an uptick in mortgage originations heavily due to refinances.
"The reason for the increase? Low interest rates," according to HousingWire.
"According to Ellie Mae’s report, the 30-year interest rate dropped for the ninth consecutive month in September, falling to 3.93%, down from 4.07% in August. And as interest rates fall, the percentage of homeowners who are refinancing is increasing."
Refinances made up almost half of all loans in September, marking the first time since March 2015 that refinances have been this high.
"The continued decline in interest rates is driving the refinance revitalization that is now accounting for almost 50 percent of all closed loans in the month," said Jonathan Corr, president and CEO of Ellie Mae, according to HW.
"The market is still anticipating further rate cuts by Treasury, so lenders should capitalize on leveraging technology to ensure they are responding to the growing number of refinance opportunities that come their way."
To learn more about the strong refinance numbers in September 2019, click on the image above.