Prepayments, Refinance Pool, Affordability all Increase as Rates Decline

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Posted To: MND NewsWire

As the current issue of Black Knight’s Mortgage Monitor was going to “press” mortgage rates dropped under 4.0 percent for the first time in more than a year. Black Knight spokesperson Mitch Cohen says the decline to 3.99 percent sent what the company considered the refinanceable population of homeowners up by 2 million in just a month and a total of 3 million in two months. Black Knight considers refinanceable homeowners as those who can both qualify for refinancing and would save at least 75 basis points by doing so. The company now counts 5.9 million potential refinancing candidates in that pool, the largest group in nearly three years. The figure below shows the distribution of potential refinance candidates across origination vintages as of mid-May, prior to the most recent pullback in…(read more)

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