A couple sits with a mortgage consultant in Miami.
Mortgage rates have been on a roller coaster for the last year, but now they’re sitting at the bottom of the track, giving a major boost to the number of borrowers who can benefit from a refinance.
The average rate on the 30-year fixed mortgage hit a three-year low of 3.73% last week, according to Freddie Mac. That means 8.2 million borrowers could refinance and lower their interest rates by at least 75 basis points, estimates Black Knight, a mortgage software and analytics company. It’s the largest group since the end of 2016.
It is also a jump of 6.3 million eligible borrowers since last November, when rates peaked at just over 5%. The average borrower could save about $266 per month, bringing the total amount of potential savings to about $2.2 trillion.
While most borrowers tend to refinance after several years, about 1.5 million borrowers, or 35% of those who took out their loans just last year, could benefit greatly….