Refi Pool Shrinks by 4 Million

Posted To: MND NewsWire

As everyone knows, interest rates shot up immediately in the wake of the November 8 presidential elections, triggered by a sell-off in Treasury bonds. Now Black Knight says, in its current Mortgage Monitor, that the jump eliminated 50 percent of candidates from the refinanceable population that existed before the election and has also pushed home affordability to a post-recession low. Within three-weeks of the election the 30-year fixed-rate increased by 49 basis points , cutting the number of homeowners who might potentially refinance (either because they could qualify or there was a financial incentive for doing so) from 8.3 million to 4.0 million . This matches a 24-month low set in July 2015. At that time refi volumes were 37 percent lower than in the third quarter of 2016. About $2 million...(read more)

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