Black Knight Financial Services recently released their April 2015 Mortgage Monitor finding that the refinance share of the mortgage origination market was over 50 percent in the first quarter of 2015, a first since the third quarter of 2013. Black Knight reviewed refinance originations as a share of the total market in the report. They also examined the tightening of current credit score requirements when dealing with both refinance and purchase originations.
According to the report, the 30-year conforming mortgage interest rate dropped approximately 70 basis points from last year. This decrease has allowed qualifying borrowers a chance to refinance at a lower rate. There are also about 7 million potential refinance candidates, a large increase from 4.5 million last year. These borrowers would not only qualify but also benefit for but also benefit from refinancing. As more borrowers are refinance their homes, credit scores also rise, while loan-to-value ratios declined.
While the nation's unemployment rate of 5.5 percent and 8.7 million of unemployed persons for May 2015 remained virtually unchanged from the previous month, the number of jobs added in May increased substantially from April up to 280,000, according to the May 2015 Employment Summary released by the Bureau of Labor Statistics on Friday. May's job gains represented in an increase of about 73,000 from the previous three-month average of 207,000.