FHFA: April 2016 Refinance Report
June 14, 2016
April 2016 Highlights
Total refinance volume increased in April 2016 after a decrease in mortgage rates in the first quarter.
Mortgage rates decreased in April: the average interest rate on a 30?year fixed rate mortgage fell to 3.61 percent from 3.69 percent in March.
In April 2016:
- Borrowers completed 6,347 refinances through HARP, bringing total refinances from the inception of the program to 3,406,890.
- HARP volume represented four percent of total refinance volume.
- Six percent of the loans refinanced through HARP had a loan-to?value ratio greater than 125 percent.
Year to date though April 2016:
- Borrowers with loan?to?value ratios greater than 105 percent accounted for 22 percent of the volume of HARP loans.
- Twenty six 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 10 or more percent of total refinances in Florida and Georgia, more than double the 4 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.
Ten states accounted for over 60 percent of the nation’s HARP eligible loans with a refinance incentive as of December 31, 2015.
Attachments: Refinance Report – April 2016