"In January, it was closer to, like, 44% of the locks, but at the end of February, it was 41%. Now, the reason why that is, we see rates end the mortgage market index at 5.9%. That's a psychological barrier for folks. And then we also saw our percentage share of ARMs hit a recent high of 10%."
"I think it's hard to let go of a 2% or 3% rate. At this point, it takes a life event, such as your family expanding, debt or even a death. I think there's this COVID-19 time warp that people are dealing with too. It doesn't seem that far away, but it's been six years now. These American homeowners are still grounded to those low rates and think that is the norm."
"When borrowers are on the fence or thinking about refinancing, there are so many factors to consider. The monthly payment savings have to outweigh the transaction costs. There's a lot to consider that makes this hurdle harder to jump over."
Refinance share dropped from 44% in January to 41% in February as mortgage rates reached 5.9%, creating a psychological barrier for borrowers. Adjustable-rate mortgages (ARMs) hit a recent high of 10% share, offering effective rates around 5.25% that support purchase activity. Borrowers remain highly rate-sensitive despite loan officers offering low-6% rates, largely due to psychological attachment to pandemic-era 2-3% rates. Life events like family expansion or debt drive refinancing decisions. Borrowers struggle to justify refinancing when monthly payment savings don't outweigh transaction costs. Recent rate volatility has prompted some borrowers to renegotiate recent locks, and overseas activity influences market dynamics.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]