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.

Most Popular Articles

Are mortgage rates about to hit an all-time low?

The lowest mortgage rates have ever been was around Thanksgiving 2012 when the interest rate for a 30-year fixed-rate mortgage fell to 3.31% (according to Freddie Mac data), but rising panic over the coronavirus could drive rates to lows never seen before. HW+ Premium Content

Feb 25, 2020 By

Latest Articles

The looming concerns servicers might be ignoring

Breaking down the biggest trends and concerns servicers should be thinking about, TMS Chief Compliance Officer Shanya Arrington sat down with HousingWire to offer some exclusive insights on what’s happening in the servicing space. HW+ Premium Content

Feb 27, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please