Wednesday, June 8, 2016

Refinancing Dead Again?; Purchase Sentiment Rebounds; Rates Stay Low; Mortgage Bank Profits

With mortgage interest rates generally down since the end of last year CoreLogic's principal economist Molly Boesel took a crack this week at figuring out how much gas might be left in the refinancing engine. In her analysis she added 100 basis points to the current market rate as a measure of a current mortgage rate at which there begins to be an incentive for the borrower to refinance. For the week of May 12, 2016, Freddie Mac reported an average 30-year mortgage rate of 3.57 percent (which as of June 2 had risen to 3.66 percent.) Using the first figure, the typical borrower would only begin to save money through refinancing if his or her existing mortgage had a rate of 4.57 percent or higher . The chart above shows the rates and unpaid principal balance (UPB) of the current mortgage pool

from
http://redirect.viglink.com?u=http%3A%2F%2Fwww.mortgagenewsdaily.com%2Freports%2Fnewsletter%2F2016%2F6%2F8%2F2237&key=ddaed8f51db7bb1330a6f6de768a69b8

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