Mortgage Prepayments Skyrocket To 58% As Refinancing Increases
Mortgage prepayments are up a whopping 58% in July of 2019 from just a year ago. Lower rates have been fueling the refinance market, according to research from Nlack Knight.
"The lowest mortgage rates in almost three years are driving more Americans to refinance home loans. The average U.S. rate for a 30-year fixed mortgage fell to 3.6% in the first two weeks of August, the lowest level since November 2016, according to Freddie Mac," reported HousingWire.
The outlook looks bright for loan originations that could likely see an increase of 15% compared to last year, according to a report from the Mortgage Bankers Association.
"MBA also said it expected the refi share of originations to rise to 33% in 2019. That’s up from the 30% it projected last month. In 2018, the refi share was 28%," according to the HousingWire report.
"The Black Knight report also showed the national delinquency rate was 3.46% in July. That was the lowest rate for July in records going back to 2000, the company said."
To learn more about the current state of mortgage prepayments and loan originations following the dip in rates, click on the image above.