Last week, Freddie Mac’s fixed mortgage rate fell to its lowest level in three years, bumping the pool of refinance candidates up significantly.
At the end of June, approximately 8.2 million homeowners with mortgages could benefit from a refi, according to the latest data from Black Knight.
That’s 1.5 million more than before the recent interest rate drop, and it’s the greatest number since late 2016 when the pool was as large as 8.3 million.
That also means that there are nearly 4.5 times more refi candidates than there were when rates peaked in November 2018.
According to Black Knight's data, borrowers who refinanced could reduce their mortgage rate by 0.75%, amounting to an average savings of $266 per borrower per month.
Notably, among the 8.2 million mortgages that could benefit from a refi, 35% were originated in 2018.
Black Knight said the refi pool could swing either way depending on the directions rates take, and making the potential size of the refinance market worth watching in the months ahead.