FHFA: Refinance Report - February 2018

Investor Update
April 12, 2018

Source: FHFA

February 2018 Highlights

  • Total refinance volume decreased in February 2018 as mortgage rates rose in January. Mortgage rates increased in February: the average interest rate on a 20-year fixed rate mortgage rose to 4.33 percent from 4.03 percent in January, reaching levels last observed in 2014.

In February 2018:

  • Borrowers completed 1,292 refinances through HARP, bringing total refinances from the inception of the program to 3,486,875.
  • HARP volume represented 1 percent of total refinance volume.
  • Three percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.

Year to date through February 2018:

  • Borrowers with loan‐to‐value ratios greater than 105 percent  accounted for 15 percent of the volume of HARP loans.
  • Thirty-one percent of HARP refinances for underwater borrowers were for shorter‐term 15‐ and 20‐year mortgages, which build equity faster than traditional 30‐year mortgages.
  • HARP refinances represented 3 percent of total refinances in Illinois -- triple the 1 percent of total refinances nationwide over the same period.
  • Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.
  • Nine states and one U.S. territory accounted for over 70 percent of the nation's HARP eligible loans with a refinance incentive as of September 30, 2017.

Attachments: Refinance Report - February 2018

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