FHFA February 2017 Refinance Report
Investor Update
April 13, 2017
?February 2017 Highlights
Total refinance volume fell in February 2017 as mortgage rates in January remained over half a percent higher than the levels observed in November 2016. Mortgage rates increased in February: the average interest rate on a 30?year fixed rate mortgage rose to 4.17 percent from 4.15 percent in January.
In February 2017:
- Borrowers completed 4,198 refinances through HARP, bringing total refinances from the inception of the program to 3,456,422.
- HARP volume represented 3 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 through February 2017:
- Borrowers with loan?to?value ratios greater than 105 percent accounted for 18 percent of the volume of HARP loans.
- Twenty three 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 6 or more percent of total refinances in Nevada and Florida, double the 3 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 September 30, 2016.
Attachments:
Refinance Report – February 2017
Source: FHFA
