FHFA: Refinance Report – November 2018

Investor Update
January 15, 2019

Source: FHFA

•Total refinance volume increased in November 2018 after falling throughout most of the year in response to rising mortgage rates. Mortgage rates increased in November: the average interest rate on a 30‐year fixed rate mortgage rose to 4.87 percent from 4.83 percent in October.

In November 2018:

•Borrowers completed 449 refinances through HARP, bringing total refinances from the inception of the program to 3,493,961.

•HARP volume represented less than 1 percent of total refinance volume.

•One percent of the loans refinanced through HARP had a loan‐to‐value ratio greater than 125 percent.

Year to date through November 2018:

•Borrowers with loan‐to‐value ratios greater than 105 percent accounted for 16 percent of the volume of HARP loans.

•Thirty-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 2 percent of total refinances in Florida and Illinois compared to 1 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 70 percent of the nation’s HARP eligible loans with a refinance incentive as of June 30, 2018.

FHFA: Refinance Report – November 2018

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