Black Knight: The Rising Toll of Rates on Refinancing, Affordability

Posted To: MND NewsWireBy mid-October the average interest rate for 30-year fixed rate mortgages (which at that point was at 4.85 percent) represented an increase of 85 basis points from the first of the year and 35 basis points just since August. In light of this, Black Knight’s September Mortgage Monitor attempts to measure how many homeowners might still have an incentive to refinance their homes. They estimate that the refinanceable population has been more than cut in half (a 56 percent reduction) since the beginning of 2018 as some 2.2 million people have lost that incentive. This leaves only about 1.86 million homeowners who would be likely to qualify for refinancing and still have a rate-based reason to do so. Black Knight defines the incentive as a transaction that would provide borrowers with at least a…(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.

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Michael Ayoub, Author NMLS ID 6631