A surge in the volume of refinance loans when rates drop significantly and many borrowers decide to refinance.
A refinance (refi) boom is a surge in the volume of refinance loans when rates drop significantly. During this time, many borrowers decide to refinance into a new loan that offers a lower interest rate or monthly payment.
Because the time necessary to close a refinance loan can increase dramatically when overall purchase and refinance volume increases, lock periods must be increased from 30 to 45 or even 60 days (if subordinate financing is involved). Industry-wide, it's commonly accepted that purchase loans take priority over refinance loans in terms of the loan approval process (as purchases are more time-sensitive transactions).