Blink, and you missed your chance to refi. And according to nationalized mortgage giant Freddie Mac, it’s about to get worse.
As shown last week, as a result of the recent spike in yields, the population of eligible refinance candidates has already plunged by more than half. As Black Knight pointed out, as of the end of November, though there are still 2M borrowers who could save $200 /month by refinancing and a cumulative $1B/month in potential savings, this is less than half of the $2.1B/ month available just four weeks ago.
Since then the number has shrunk substantially as rates have continued their relentless move higher.
According to the latest Wells Fargo refi rates, a 30 Year Fixed mortgage will now cost a prospective creditor some 4.625%. This was in the mid-3%s just a few months ago.
This post was published at Zero Hedge on Dec 15, 2016.