Black Knightâs October Mortgage Monitor report stated that the number of potential refinance candidates dropped by over 50 percent within three weeks of the U.S. presidential election as 30-year mortgage rates jumped 49 basis points (BPS).
It went on to say that approximately $1 billion per month aggregate in potential savings remains available, which is down from $2.1 billion per month immediately prior to the election.
It now takes 21.6 percent of the median monthly income to purchase the median-priced home, the highest share needed since June 2010 when rates were 4.75 percent but average home values were 20 percent less than today.
In 2013, when the affordability ratio hit a similar level (21.4 percent), annual home price appreciation decelerated rapidly, from nine percent to below 5 percent.
Even with recent rate jumps, the national payment-to-income ratio is 10 percent lower than during the benchmark period of 1995-1999.