Skip to main content

A New Boom in Refi?

Phil Hall
Mar 07, 2016
The Newtonian notion that every action creates a reaction has permeated the housing world, a new data from Black Knight Financial Services (BKFS) has determined that the 30-basis-point decline in interest rates during the first six months of this year

The Newtonian notion that every action creates a reaction has permeated the housing world, a new data from Black Knight Financial Services (BKFS) has determined that the 30-basis-point decline in interest rates during the first six months of this year has increased the population of refinanceable borrowers by 30 percent to 6.7 million.

“When Black Knight last looked at the refinanceable population just two months ago, there were 5.2 million potential candidates, and that number was on the decline,” said Ben Graboske, senior vice president at Black Knight Data & Analytics. “That analysis was shortly after the Federal Reserve raised its target rate by 25 basis points, at which time the prevailing wisdom was that mortgage interest rates would rise in response.”

Graboske stated that 3.3 million of refinance-ready borrowers could save $200 or more each month, and nearly one million could save over $400 per month; the average borrower could save around $3,000 per year. And if rates go higher, the situation changes even more.

“We also looked at an example scenario to see the potential impact if rates continued their downward trend and found that an additional 15-basis-point reduction–taking the 30-year fixed mortgage rate down to 3.5 percent–would bring yet another 2.1 million borrowers into the refinanceable population,” he added. “At 8.8 million, that would make for the largest refinanceable population since 2012-2013, when rates were at historic lows.”

Published
Mar 07, 2016
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023
Judge Grants UWM Partial Win In Ultimatum Lawsuit

AML’s declaration that the ultimatum violated antitrust law survived.

Industry News
Jan 04, 2023
A&D Mortgage Launches Temporary Rate Buydowns

Offering 3-2-1 and 2-1 buydown options.

Industry News
Jan 04, 2023
Zillow: 2M Homes No Longer Require A Jumbo Loan

This is the result of FHA's update to the baseline conforming loan limit in high-cost areas topping $1 million.

Industry News
Jan 04, 2023