Mortgage rates moved lower again last week, touching 3.63 percent for a 30-year fixed rate mortgage, according to Mortgage Daily News.
That’s the lowest level since Oct. 8, 2019, and Black Knight reported that the mortgage rate moves have increased the population of high-quality refinance candidates which it tracks.
Black Knight said the drop now brings 9.4 million borrowers into its high-quality candidate pool – which it defines as 30-year mortgage holders with a maximum 80 percent loan-to-value ratio and credit scores of 720 or higher, who could shave at least 0.75 percent off their current first lien rate by refinancing.
Within that pool, borrowers could save an average of $264 a month by refinancing, which would total a monthly principal and interest savings of $2 billion around the country.
More than 2.6 million borrowers could gain $300 or more in savings by refinancing, with borrowers in New York able to average $372 in savings, and those in California averaging $364 in savings.
In all, 18.9 million borrowers have mortgage rates at least 0.75 percent above current rates, and thus could consider gains from a refinance.
Small shifts in the mortgage rate could greatly impact the high-quality candidate pool, Black Knight said. A move down to 3.5 percent would open up the high-quality pool to 11.2 million borrowers. But a move higher to 3.75 percent drops the high-quality pool to 7.8 million, and another slight increase to 3.875 percent would slim that pool to 6.5 million.