Freddie Mac’s Insight & Outlook report for February 2016, released Monday, cited the nearly 655 billion dollars in outstanding conventional 30-year mortgage-backed securities with interest rates greater than 4 percent. The report found that several borrowers have passed on favorable opportunities to refinance to lower their mortgages to the lower rates available for at least two-and-a-half years.
According to Freddie Mac, borrowers who ignore extended refinance opportunities are said to be burned out by several factors, including decreased credit scores, job loss, and illness, which make them reluctant to try. Significant delinquencies making the cost of refinancing more than it’s worth are also a factor. In raw numbers, burned-out borrowers account for 420 billion dollars of that 655 billion dollar pot, or 64 percent.
Managers of properties in single-family rental securitizations have been steadily increasing rents more for renewals than for new tenants for vacant properties over the past two years, a new report by Morningstar Credit Ratings has found. According to Morningstar’s 28-month-long analysis of single-family rental securitizations, rents in Q4 of 2015 dropped for new tenants(after almost half a year of remaining flat, while at the same time rents for existing tenants has increased gradually and steadily since at least July of 2014.