Contrary to earlier expectations, the share of refinancings in newly originated mortgages continues to increase, Freddie Mac said in its quarterly refinance review. In fact, the share of refinancings in the second quarter actually rose to 60% compared with only 50% in the same period last year. Furthermore, with mortgage rates recently reaching 35-year lows (the firm expects mortgage rates to remain in the 6.5% to 7% for the rest of the year), the refinance share is expected to pick up going forward.

Previously, Freddie Mac expected the refinance share to start falling and eventually reach only about 30% of originations by the end of the year.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.