Mortgage

Here’s how many borrowers should refinance after the recent drop in mortgage rates

A massive drop in mortgage rates will likely spark refi activity

Mortgage rates fell 22 basis points last week to 4.06%, an event that will likely be a gamechanger for the refinance market.

According to the latest report from Black Knight, 4.9 million homeowners with a mortgage can now reduce their interest rate by at least 0.75% by refinancing after the recent drop in mortgage rates.

The latest rate change brings refinance incentive to 1.6 million more homeowners than before – a near 50% jump in refi incentive in a single week’s time.

This is welcome news for lenders who have seen their profitability take a hit as the refi market spiraled downward in recent months, hitting a 10-year low just four months ago.

In 2018, the market saw the lowest annual refi volume since 2000, Black Knight said.

But now, the population of refinanceable borrowers is nearing a two-year high, Black Knight said, noting that if rates hold steady, the mortgage market could see major refi activity very soon.

About the Author

Most Popular Articles

Housing market flashing recession signal

The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations. “When income fails to keep pace with home prices, the latter must fall back,” the post said. “Falling home prices, in turn, drive down household spending.”

Oct 11, 2019 By

Latest Articles

Pennsylvania sues rent-to-own operator Vision Property Management for preying on low-income renters

Vision Property Management has already run into trouble in Wisconsin and New York, with each state claiming that the company’s rent-to-own business model is actually a scam designed to prey on low-income individuals who want to buy a home. And now, the company has another state to deal with: Pennsylvania.

Oct 11, 2019 By