FHFA: Refinance Report – April 2017
Investor Update
June 15, 2017
April 2017 Highlights
Total refinance volume fell in April 2017 as mortgage rates in March remained over half a percent higher than the lows observed in 2016. Mortgage rates decreased in April: the average interest rate on a 30?year fixed rate mortgage fell to 4.05 percent from 4.20 percent in March.
In April 2017:
- Borrowers completed 3,493 refinances through HARP, bringing total refinances from the inception of the program to 3,464,589.
- 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 April 2017:
- Borrowers with loan?to?value ratios greater than 105 percent accounted for 19 percent of the volume of HARP loans.
- Twenty-five 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 December 31, 2016.
Attachments:
Source: FHFA