Mortgage Traders Breathe Easier as the Risk of a Refinancing Wave Ebbs
- Recent uptick in mortgage rates spurs refinancing index plunge
- Over $400 billion of mortgages have shifted out of refi window
Photographer: Chris Rank/Bloomberg
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Mortgage investors are breathing a sigh of relief amid signs a potential surge in prepayments set to weigh on returns may be avoided.
An 11 basis point uptick in mortgage rates since the end of March has seen the Mortgage Bankers Association’s U.S. Refinancing Index tumble about 28 percent in three weeks. It’s the steepest aggregate decline in the index over a similar period since February 2015.