Mortgage Mortality About More Than Low Rates

Posted To: MND NewsWire

In its "first look" at August mortgage performance data Black Knight noted that the Single Month Mortality (SMM) or prepayment rate for the month had skyrocketed , rising by 32 percent from July to a rate of 1.67 percent of all outstanding mortgages. The company said this was in part fueled by post-Brexit interest rates and was the highest SMM rate in more than three years. Prepayment rates are generally considered a good indicator of refinance activity , but that isn't the only factor behind it. The company's Mortgage Monitor goes deeper into the subject, providing a breakdown of prepay activity by the driving factor behind it. The company used its mortgage performance database as well as public records to conduct its analysis. On average, over the last 10 years about 58 percent of SMM can...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

from Mortgage News Daily http://ift.tt/2dneecs