Mortgage rates fell 22 basis points last week to 4.06%, an event that will likely be a gamechanger for the refinance market.

According to the latest report from Black Knight, 4.9 million homeowners with a mortgage can now reduce their interest rate by at least 0.75% by refinancing after the recent drop in mortgage rates.

The latest rate change brings refinance incentive to 1.6 million more homeowners than before – a near 50% jump in refi incentive in a single week’s time.

This is welcome news for lenders who have seen their profitability take a hit as the refi market spiraled downward in recent months, hitting a 10-year low just four months ago.

In 2018, the market saw the lowest annual refi volume since 2000, Black Knight said.

But now, the population of refinanceable borrowers is nearing a two-year high, Black Knight said, noting that if rates hold steady, the mortgage market could see major refi activity very soon.