Mortgage rate rise has slashed 2 million from the 'refi population'

Two million American homeowners lost their incentive to refinance this week as the average mortgage rate edged higher.

The ‘refinance population’ was slashed to 9.8 million according to data from Black Knight, as the Freddie Mac 30-year average increased to 3.56%.

Last week, the refi population surged to a record 11.7 million as the mortgage rate fell to 3.49%.

Black Knight defines refinance candidates as 30-year mortgage holders with a maximum 80% loan-to-value ratio and credit scores of 720 or higher, who could shave at least 0.75% off their current first lien rate by refinancing.

The data highlights how a relatively small change in the average mortgage rate can change the incentive for homeowners considering refinancing – and the importance of timing those refinance applications to take advantage of the best rates.

Black Knight acquisition

Black Knight announced Thursday that is has expanded its capital markets capabilities through the acquisition of Compass Analytics.

Compass provides advanced pricing and valuation solutions to support loan officers and capital markets professionals to create a better experience and to offer competitive rates for consumers.

"Both Black Knight and Compass Analytics are focused on developing innovative technologies that give enhanced functionality and value to our customers, so integrating our two companies was a natural fit," said Black Knight CEO Anthony Jabbour. "This acquisition will give us the opportunity to bring clients new and useful tools to improve risk management, gain deeper insight for smarter decision-making, and identify best-execution strategies."