Black Knight Sees Future Holding Fewer Refinances, More ARMs


Posted To: MND NewsWire

The refinance pool, homeowners who could benefit from exchanging their old first mortgage lien for a new one, is shrinking fast . Black Knight says, in its March Mortgage Monitor , that the pool declined by 40 percent from the beginning of the year through February 15. This happened as the average rate for a 30-year fixed-rate mortgage (FRM), per Freddie Mac, increased by 43 basis points to 4.38 percent. Since then rates have risen more slowly; they closed out last week at 4.43 percent. These increases put the average rate back to levels last reached in the spring of 2014. These increase means that approximately 1.4 million borrowers lost the interest rate incentive to refinance in just the first six weeks of 2018. This leaves 2.65 million candidates who could benefit and are likely to qualify…(read more)

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