As Black Knight writes, it looks at the – quite dramatic – effect the mortgage rate rise has had on the population of borrowers who could both likely qualify for and have interest rate incentive to refinance. It finds that the number of potential refinance candidates has tumbled to the lowest since December 2008....
To be sure, it is hardly a shock that after a decade of record low rates, the current rise in rates means a collapse in refi activity: after all anyone who could, and would, refinance, already has, while the universe of those who have yet to take advantage of lower rates and are eligible to do so, has collapsed.
Which is bad news not only for homeowners, but also for the banks, whose refi pipeline - a steady source of income and easy profit - is about to vaporize....Zero Hedge
Bank Sector In Peril As Refi Activity Crashes Amid Rising Rates
Tyler Durden
4 comments:
Easily fixed with no income verification loans of up to 110%. It worked before ...
What could go wrong?
Banks are in peril because the Jan 1 tax reform caused $40B write down of bank assets which triggers a further reduction of 10x ($400B) in a follow on regulatory response once the charge to capital is realized ... meanwhile they have the so called 'stress test' results due next week and no relief provided due to the Jan 1 tax reform ... and meanwhile the Fed has put the brakes on asset reduction and instead ADDED MORE ASSETS over the last 2 weeks increasing Reserve Assets at banks when they are already stretched out ..thanks Fed!...
And then the bank reform bill (which would help with capital requirements...) is sitting there rotting in the House meanwhile Paul Ryan is over in Czechoslovakia jerking off...
Were gonna be lucky to avoid GFC 2 in here with these bozos....
Welfare queens - I mean "banks" - are in trouble? Nothing to worry about: the taxpayer will come to their rescue - thanks to the wads of $100 bills than bankers have stuffed into the back pockets of politicians....:-)
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