FHFA: Refinance Report – November 2016
January 17, 2017
November 2016 Highlights
Total refinance volume rose in November 2016 as mortgage rates in October remained near lows last observed in 2013. Mortgage rates increased by over a quarter percent in November: the average interest rate on a 30-year fixed rate mortgage was 3.77 percent.
In November 2016:
- Borrowers completed 4,530 refinances through HARP, bringing total refinances from the inception of the program to 3,442,967.
- HARP volume represented 2 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 2016:
- Borrowers with loan?to?value ratios greater than 105 percent accounted for 21 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 6 or more percent of total refinances in Nevada, Florida, and Georgia, 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 June 30, 2016.
Attachments: Refinance Report – November 2016