JACKSONVILLE, Fla.–Contrary to conventional wisdom, the mortgage refinance market is not tapped out and there are at least five-million mortgage borrowers who would still benefit from moving to a lower rate.
That’s according to a new report from Black Knight Financial Services, which said that even though a long period of low mortgage rates would seem to have enticed anyone who could benefit from doing so into refinancing their mortgages, many people have yet to take any action.
The company estimates that five-million borrowers could both qualify and benefit from a mortgage refinance, which is down from the nearly seven-million who could have refinanced just last spring, when the average rate on the 30-year fixed mortgage was below 3.7%. The average rate on the 30-year fixed has risen slightly, but Black Knight said approximately 2.4 million borrowers could potentially save $200 or more on their monthly mortgage payments and an additional 1.9 million could save $100 to $200 per month. In all, those consumers are leaving “$1.2 billion on the table,” Black Knight said.
"If rates go up 50 basis points from where they are now, 2.1 million borrowers will fall out of the running; a 100-basis-point increase would eliminate another million, leaving only two-million potential refinance candidates, the lowest population of refinance candidates in recent history," said Ben Graboske, senior vice president at Black Knight Data & Analytics.