Rates are clearly on the rise, and the remaining borrowers that are eligible to refinance their home are quickly realizing that this may be their last opportunity. Despite rising rates, the last week of January produced an 18% jump in mortgage applications from the previous week. Despite that increase, refinance transactions are still 50% lower from the same time last year, with current mortgage rates representing the highest level since March 2020. Mortgage applications to purchase a home, increased by 4%, however that number is 7% lower than the same week last year.
Despite mortgage rates remaining at record lows for much of 2021, many borrowers were not in a position to move forward with a refinance. Now possibly with an increase in job stability since the height of the pandemic, or home appreciation that continues to rise, the door may have opened for those same individuals to capitalize before rates rise even further. According to Black Knight, a mortgage technology and data provider, there are still 5.9 million borrowers that could save enough to make the process worth it.
Source: https://cnb.cx/3upGPWd
By: Jon Iacono