The Mortgage Bankers Association projects 5 million homeowners will refinance in 2026, the largest refinance wave since 2021, as rates drop below 6% and millions of pandemic-era buyers locked in at 7%+ finally find relief.

Who Benefits Most

Homeowners who purchased between mid-2023 and mid-2024 at rates above 7% stand to save $300-500 per month by refinancing to current rates around 5.87%. Total consumer savings could reach $15 billion annually.

Process

Lenders recommend shopping at least 3 lenders, as rate quotes can vary by 0.5% or more. Closing costs typically run $3,000-6,000 and break even within 8-14 months.