Mortgage Industry Adapts to Rising Interest Rates The U.S. mortgage industry is adapting to rising interest rates, transforming lending strategies, and borrower behaviors. This article explores the implications for lenders and borrowers, offering insights into new trends and strategies.

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11.3M Have Refi Incentive, $3B in Monthly Savings on the Table: Black Knight

Thursday, Feb 13 2020
Lending
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The Freddie Mac 30-year average came in at 3.45% last week, the lowest level in almost 3.5 years and just 14 BPS above all-time lows.

This pushed the number of high-quality refinance candidates to approximately 11.3 million homeowners, for an aggregate potential monthly savings of $3B—both the highest on record outside of a single week last September when rates also fell below 3.5% for a brief period. That’s according to Black Knight.

Of that group, 1.1 million homeowners could save $500 per month or more through a refi into a new 30-year fixed loan. The average savings per borrower is $268 per month.

Note: Black Knight defines refinance candidates as 30-year mortgage holders with a maximum 80% loan-to-value ratio and credit scores of 720 or higher, who could shave at least 0.75% off their current first lien rate by refinancing.

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