Here is a quick update of my portfolio. Thanks to downgrade from William Blair, Ellie Mae ELLI pulled back significantly this morning, as much as 12%. This stock has been my favorite “refinancing boom” play for awhile.
Luckily, I was paying attention and bought shares around $23.
I realize that the Mortgage Bankers Association reported in December a significant drop in refinancing activity, however I do not believe the refinancing boom is finished. Even if rates creep higher, they will still be at attractive levels and should convince those who have not yet refinanced to get on board in fear of missing out. In the past year there have been several dips in refinancing activity, but they have yet to prove the boom is over.