Wednesday , 23 October 2019

Refinancing Makes Sense For Nearly 8 Million Homeowners, But Rates Hit Resistance

Even with home prices in most areas now well above their pre-Great Recession highs, affordability is not terribly low by historic measures. Black Knight, in its current issue of Mortgage Monitor , says, with the 30-year fixed rate in effect at the end of September, 3.64 percent, the principal and interest payments on an average priced home required 20.7 percent of the national median income. This was the second lowest payment to income (P&I) ratio in 20 months. It was a bit lower in early September when rates dipped briefly below 3.5 percent, sending affordability to a 32-month high. Last November rates peaked near 5.0 percent and affordability hit a nine-year low with a P&I of 23.7 percent. This prompted a noticeable slowdown in home price appreciation. Since then, declining rates

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