For the first time this year, interest rates edged up from October to November as refinances dwindled, according to the Ellie Mae Origination Insight Report.
Interest rates increased slightly from 3.94% to 3.97%, pushing the share of refinances down. Refinances made up 49% of originations in November, falling back from 51% in October. Meanwhile, the percentage of adjustable-rate mortgages climbed from 5% to 5.3% month over month.
“Interest rates rose for the first time in 2019, and as expected, we are seeing the percentage of adjustable-rate mortgages rise and the percentage of refinances taper off,” said Jonathan Corr, president and CEO of Ellie Mae.
Closing rates on all loans reached their highest levels in 2019 at 78.6%. Closing rates on refinances jumped to 77.1% while closing rates on purchase loans remained unchanged at 80.6% for the second straight month.
The time to close all loans inched up to 45 days in November from 44 days in October. The time to close refinances also grew one day longer to 43 days, while the time to close for purchases held steady at 47 days for the second month.
“Simultaneously, closing rates have reached the highest point in 2019 at 78.6%,” Corr said. “We will watch to determine the impacts of holiday seasonality on the home-buying market as we close out 2019.”