Refi is Dead. Can You Switch Gears?


Interest rates are rising for the first time in a long time...and it’s bringing refinances to a screeching halt. Nearly a decade of rates parked at “historic lows” made the refi a solid bet for many homeowners - and also a sizable chunk of many lenders’ business.

With rising rates, however, the refi often no longer makes sense for consumers, and the market has shifted accordingly. According to the MBA, refi application volume is now at its lowest rate since December 2000. The origination market is now dominated by purchase originations, with construction and HELOC loans also gaining share. “Dead” might be hyperbole, but refis definitely seem to be settling in for a long sleep.

Say you’re a lender who recently rolled out a a new digital mortgage experience optimized around your business focus...and at the time, your business focus was refis. What does that mean for you now?

Well, if you’re a Roostify client, it means you’re actually doing fine.

We like to talk about how Roostify is designed as a platform, not just a pretty front-end system, in order to be flexible enough to adapt to your future needs. This is exactly the kind of situation where the platform approach pays off. Roostify clients have had the luxury of adjusting their strategy without worrying about built-in constraints in their digital mortgage system, and without disrupting the unified loan experience they offer their clients.

In fact, a number of our clients are doing just that. As the shifting market makes HELOC more attractive to homeowners than refi, our lender clients are using the tools that already exist in the platform to create what they need to service this increased demand.


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