FHFA: Refinance Report
January 16, 2018
November 2017 Highlights
- Total refinance volume increased in November 2017 as mortgage rates in October remained below the levels observed at the beginning of the year. Mortgage rates increased in November: the average interest rate on a 30?year fixed rate mortgage rose to 3.92 percent from 3.90 percent in October.
In November 2017:
- Borrowers completed 2,123 refinances through HARP, bringing total refinances from the inception of the program to 3,482,023.
- HARP volume represented 1 percent of total refinance volume.
- Five percent of the loans refinanced through HARP had a loan?to?value ratio greater than 125 percent.
Year to date through November 2017:
- Borrowers with loan?to?value ratios greater than 105 percent accounted for 19 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 5 or more percent of total refinances in Nevada and Florida ?? more than double the 2 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 60 percent of the nation’s HARP eligible loans with a refinance incentive as of June 30, 2017.