Refi Possibilities Plummet
“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…” Writes Carmen Arroyo at Bloomberg.
- EVEN LOWER: Looking at conventional 30-year mortgage bonds by FHN Financial, if you take out borrowers that are unlikely to be able to refinance or to bother only about 0.15% of loans can be refinanced.
- REFI DEMAND: According to the Mortgage Bankers Association, demand for refinancing has fallen 54% year-over-year with expectations that the number will continue to plummet.
Speaking of 5%, Bill McBride noticed that Mortgage News Daily reported that rates ended the week at 4.95% for a 30-year fixed. So that 0.15% number has probably gotten even smaller…
