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Refinance Report

Refinance Report - February 2017

Published: 4/13/2017

​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.

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© 2017 Federal Housing Finance Agency