American Refinancing Boom Seen Fizzling, Bonds Show: Mortgages

The great American refinancing boom of 2015 is turning out to be greatly exaggerated.

In January, concern mounted among U.S. mortgage-bond holders that homeowner refinancing was about to soar, decreasing the value of their securities. Their worries were short-lived. Last month, premiums fell on bonds backed by loans unlikely to refinance. That means investors saw less need for protection against the risk borrowers would repay their mortgages early.