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Falling interest rates are helping more homeowners refinance their mortgages. The average rate for a 30-year fixed mortgage is now hovering around 4 percent.
That means 4.9 million home loan borrowers could quality for a refinance and cut their interest rates by at least 75 basis points, according to mortgage data and analytics company Black Knight, a 50 percent jump in such borrowers in a single week, CNBC reports. In the report, Black Knight researchers say, "While this will certainly impact buying power and housing demand as we enter the spring homebuying season, it's also had a massive impact on refinance incentive almost overnight."
"After seeing refinance volumes drop significantly in late 2018, this is a game changer for both the housing and refi markets if rates hold at this level for an extended period of time."
On a $300,000 mortgage a refinance from 4.81 percent to 4.06 percent would save the homeowner about $133 per month. On a $600,000 loan, it would be twice that savings, or $267 per month.
