CoreLogic's June report finds that loan refinancing doesn't make sense for a lot of current homeowners in the U.S. Forecasts predict mortgage rates will increase this year, so CoreLogic used its data to determine refinancing conditions, mortgage denial rates and the overall health of the housing market throughout the nation. As of May 12, 2015, the monthly average commitment rate was reported at 3.57 percent. A good rule to follow for refinancing is to add 100 basis points onto the current rate, which would bring it to 4.57 percent. Most borrowers held mortgages around 4.50 percent in May, just slightly below the threshold that makes sense for refinancing. And if mortgage rates continue to climb this year as predicted, about 5.5 million borrowers will find refinancing to be an unappealing option. Mortgage loan applications low Although refinacing is down, loan origination is also significantly lower than it was 10 years ago. In 2005, there were 11.7 million loan applicatio...
- Loan originations have declined by 60 percent since 2005, when there were 11.7 loan applications for single-family homes.
- Home prices increased 1.2 percent monthly in Illinois and 1.8 percent on an annual basis.
- Illinois is still in the red for the number of foreclosures in the state.