AmiSight 9/15: As Mortgage Rates Fall, Will Refinancing See a Surge?

Ami Kassar
12 minutes ago
1 min read

The average 30-year fixed mortgage rate has dipped to a 10-month low of 6.56%, enabling millions of homeowners to save money by refinancing, after rates steadily climbed, reaching a high of nearly 8% in the fall of 2023. At current levels, over two million homeowners could lower their mortgage costs by refinancing, up from 1.7 million in July. This figure could reach six million if rates decline to 6%.

Here are some top perspectives from LinkedIn:

Edd Ehsan Hamzanlui, founding principal at MassCan Capital, says the potential jump in borrowers is significant for housing finance markets. A thaw in refinancing not only reshapes prepayment speeds for MBS investors, but also impacts bank balance sheets and servicer valuations.

Lily Dominguez, mortgage loan officer at Global G Home Loans, points out the median-income family has lost $30,000 in homebuying power compared to 2019, showing that the housing market doesn’t move in straight lines but rather moves in windows of opportunity.