Despite falling mortgage rates and rising home values, millions of home owners are not refinancing because of the hassle of a refinance. According to a new report by Black Knight Financial Services, close to 4.5 million borrowers are eligible and have financial incentive to refinance. Refinance applications, however, remain 30 percent below year-ago levels.
Lynn Fisher, Mortgage Bankers Association’s Vice President of Research and Economics noted: “The recent pause in the upward movement of interest rates continues to encourage late-to-the-game borrowers to refinance”
Mortgage rates do not directly follow interest rate hikes by the Federal Reserve but are linked to the yield on the 10-year Treasury, which can move on other economic factors both in the U.S. and overseas.
Ben Graboske, Senior Vice President of Data and Analytics at Black Knight Financial Services noted “There are enough pressures in the market — lenders getting more efficient — that we’re going to have competitive rates around for a while.”