Mortgage Refinancing: How Does It Work?
Mortgage rates started to climb in late 2021. As a result, refinance activity decreased gradually and subsided altogether by 2023. During the initial quarter of 2023, the number of new loans initiated for homeowners who refinanced their current mortgages amounted to only $47 billion. The figure is 90% lower than the refinancing originations in the first quarter of 2021. Likewise, mortgage rates are expected to remain high for the foreseeable future, so refinancing is also anticipated to stay relatively low until at least 2023. The upside to mortgage rates is that they’re not permanent. Many ex...