Continued low rates could spark a refi boom in 2020.
New data from Black Knight revealed that 9.4 million homeowners are refi-eligible right now as interest rates just hit their lowest level in three months. “We remain in an environment where even slight changes in interest rates – in either direction – can have an outsized impact on the number of refinance candidates,” Black Knight explained in its report. In mid-January, Freddie Mac reported the 30-year fixed rate home loan rate fell to 3.6% – its lowest level in three months and only about 0.25% above all-time lows. This pushed the population of high-quality refinance candidates to approximately 9.4 million. Black Knight defines refinance candidates as 30-year home loan 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. We might just see that refi boom continue through 2020 if rates remain at these lows.
Source: Rise and Shred