The early-autumn dip in mortgage rates presented a fleeting but lucrative opportunity for lenders and borrowers alike. More than 300,000 refinances were completed in September and October of 2024—the highest volume in two and a half years, reports ICE Mortgage Monitor. Borrowers rushed to capitalize on interest rates in the low 6% range, cutting their monthly payments by an average of $320 and generating a collective $47 million in monthly savings. Amid this refinancing boom, one clear takeaway emerged: lenders equipped with advanced technology platforms outperformed their competitors by processing loans faster and retaining more borrowers.
FundMore, a leader in mortgage technology, played a pivotal role in this surge, enabling lenders to process loans with unprecedented efficiency. This article explores key market trends and highlights how FundMore’s cutting-edge solutions helped lenders and borrowers gain a competitive edge in a dynamic market.
Market Trends: A Surge in Refinancing Activity
When 30-year conforming mortgage rates fell into the low 6% range in August and September, the market responded with a surge in refinancing activity. September and October saw more than 300,000 refinances, the highest in recent years. This marked a significant shift, with rate/term refinances—aimed at lowering interest rates or improving loan terms—outpacing cash-out refinances for the first time in three years.
On average, borrowers who refinanced during this period reduced their mortgage rates by over one percentage point, saving $320 monthly. For many, this reduction was a financial game-changer, translating to a collective $47 million in monthly savings across all refinances (ICE Mortgage Monitor).
This spike in activity underscores the importance of agility in the mortgage market. Lenders who could quickly process loans and close deals were best positioned to help borrowers lock in these savings before rates shifted again.
FundMore’s Role in the Refinancing Boom
During this refinancing surge, FundMore’s advanced Loan Origination System (LOS) provided lenders with the tools they needed to thrive. By leveraging automation, AI, and real-time data insights, FundMore enabled its clients to process loans faster and more efficiently.
In October 2024, FundMore saw a 46% increase in loan processing volume compared to the previous month. This surge brought the total value of loans funded through FundMore’s platform to just under $2 billion—a testament to the scalability and reliability of the technology.
Faster Closing Times
FundMore’s LOS reduced closing times across all loan types, helping lenders meet the demands of time-sensitive borrowers. In an environment where rates could shift quickly, the ability to close loans efficiently became a key differentiator. Lenders using FundMore’s platform consistently achieved some of the fastest closing times in the industry, capitalizing on the refinancing wave while delivering a seamless borrower experience.
Increased Borrower Retention
According to ICE Market Trends data, borrower retention rates reached their highest levels in two and a half years during the refinancing surge. Lenders using FundMore’s LOS were particularly successful in retaining customers, thanks to the platform’s automated workflows and borrower-friendly interfaces. By streamlining the refinancing process, lenders not only closed more loans but also fostered stronger relationships with their clients, ensuring long-term loyalty.
How FundMore Created a Competitive Advantage for Lenders and Borrowers
The combination of faster processing times, reduced errors, and user-friendly interfaces gave FundMore’s clients a clear advantage during the refinancing surge. Borrowers, eager to secure favorable rates, benefited from quick approvals and transparent processes. Meanwhile, lenders were able to handle increased demand with ease, capturing as much market share as possible.
FundMore’s technological advancements have set a new standard in the mortgage industry. FundMore IQ, the company’s document management solution, simplifies one of the most time-consuming aspects of mortgage processing. Loans move through the pipeline quickly and accurately by automating document classification, validation, and compliance checks. FundMore’s AI-powered underwriting assistant, AVA, streamlined the underwriting process by analyzing borrower data, standardizing broker notes and identifying potential risks. AVA helped lenders capitalize on the refinancing spike by expediting approvals and reducing errors.
Future Opportunities for Lenders and Borrowers
The early-autumn refinancing spike demonstrated the value of agility, efficiency, and technology in today’s mortgage market. As rates continue to fluctuate, lenders who adopt advanced mortgage technology will be better positioned to capture opportunities and mitigate risks. For borrowers, choosing lenders that use cutting-edge technology offers clear benefits: faster approvals, greater transparency, and improved access to competitive rates.
As the industry moves into 2025, lenders who leverage AI will be best equipped to navigate shifting conditions, deliver exceptional borrower experiences, and drive innovation in the mortgage space.