According to data complied by Statista, a combination of historically low mortgage rates and soaring home prices led to a surge in mortgage refinances in the U.S. In fact, the refinance boom became even more apparent in early ’21, as existing homeowners refinancing their debt accounted for a whopping 70% of $1.3 trillion in mortgage originations in Q1.
One interesting aspect they point out for comparison; in 2003, only 30% of mortgage originations went to borrowers with excellent credit scores, while such super-prime borrowers accounted for more than 70% of origination volume over the past year, making the current boom less worrisome than the 2003 refinance frenzy – which contributed to the financial crisis of 2008. Indeed….Stay safe and have a Happy Friday!!!