Refinance numbers have launched up above the peak of 2012. Today, there appear to be more than 8.7 million refi candidates in the market. This seems to be the result of the U.S. Treasury bond market which has seen a significant bump as investors shifted their interest after Brexit.
Even though refinance rates have only dropped by 15 basis points, it appears that was enough to inflate the market with an additional 1.3 million borrowers. This means that there are more people in the market today then there were when mortgage rates hit rock bottom in 2015.
In South Florida, it appears the difference is equating to an uptick of 30% versus last year’s numbers.
Other experts do not believe it has anything to do with Brexit, but it is a result of limited housing inventory with low-interest rates. This is causing an increase in home prices. As millennials are searching for homes, and baby boomers are downsizing into well-appointed homes or condos at higher price points.
Homes are selling in a matter of days, and often over the listing price. This rise in values will show an increase in equity for those staying put. Add to the fact that credit scores are starting to improve and you have more qualified homeowners with the ability to refinance their homes.
It would appear that this is a perfect mixture to keep the refi market on fire and moving forward.