Money Stuff: The Podcast · Friday, September 4, 2026
A Morgan Stanley research report suggests that AI tools will significantly streamline mortgage refinancing. This increased efficiency is predicted to lead to more frequent refinancing when interest rates fall, a process currently hindered by borrower inattention and cumbersome procedures. Consequently, mortgages may become more expensive for consumers by 10-20 basis points.
“But the thing that people do really suboptimally is when rates go down.”
“And the Morgan Stanley thesis is that rates right now are like, let's say high-ish.”
“And it's possible that like sort of like waving my hands and Literally like, like vaguing over this, but like possibly like in a world with more AI, like somehow your AI agents will be like, Hey buddy, time to refinance your mortgage. Now rates have fallen by 200 basis points or whatever.”