Never Have So Few Homeowners Had Reason to Refinance
- As rates jump, applications to refinance have dropped
- Some MBS investors bet worst has past, look for bargains now
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Less than 5% of U.S. homeowners can save money by refinancing their housing loans, the smallest proportion in the history of the mortgage bond market, as borrowing rates surge to their highest level in three years.
That’s according to an analysis by Brean Capital. And the figures might be even lower than that. Taking out borrowers that are unlikely to be able to refinance or to bother, such as homeowners with relatively low loan balances, only about 0.15% of loans can be refinanced, according to a look at conventional 30-year mortgage bonds by FHN Financial.