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Rising Rates Tilt Origination Composition

Posted To: MND NewsWire

The interest rates on loans that closed in April were the highest since Ellie Mae started tracking data in 2011. According to the company’s Origination Insight Report for April, the 30-year fixed rate for loans averaged 4.79 percent, up from 4.69 percent in March. Not unrelated to that rapid rise is the increased domination of purchase loans. Their percentage share increased 4 percentage points to 66 percent in April as refinancing shrunk to a 34 percent share. The percentage of Adjustable Rate Mortgages also increased, claiming the highest share of total loans, 6.6 percent, since June 2014. The declining numbers of refinances affected all lenders. FHA refinances fell from 23 percent in March to 22 percent in April. Conventional refinances dropped from 43 percent to 38 percent, and VA refinances…(read more)

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