A record number of borrowers can save on a mortgage refinance, as rates determine historical lows

Potential homebuyers in Seattle attend an open house.

Mike Kane | Bloomberg Getty Images

The mortgage rate simply sets another new low, and means that the number of borrowers who could benefit from a refinance hit a new all-time high.

According to Freddie Mac, the average rate on 30-year fixed mortgages dropped to 2.86% from the previous week to the end of 10 weeks, while according to Freddie Mac, it was down to 2.93% and 3.56% from a week earlier.

Freddie Mac chief economist Sam Khater said, “The late summer in the economic recovery has led to another record drop in mortgage rates.”

There are now 19.3 million borrowers, who can save money on their monthly payments at today’s low rates, according to a new calculation by Black Knight, a mortgage technology and analytics firm that cites a pool of borrowers with at least 75 basis points She sees Compared to what is offered today.

These will be high quality candidates with a 720+ FICO credit score and more than 20% equity in their homes. This is the largest volume ever and represents 43% of all 30-year mortgage holders.

The average savings for refinancing candidates is $ 299 per month. Add it up and it is a total of $ 5.8 billion per month, if all refinancing candidates were to take advantage. This is the largest total savings available through refinancing.

Without using those high-quality candidate criteria, 32.4 million borrowers with 30-year mortgages, or 3 out of 4 homeowners, now have 75 basis points or more above the prevailing rate.