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Refinance Report

Refinance Report - Fourth Quarter 2017

Published: 2/14/2018
  • Total refinance volume increased in December 2017 as mortgage rates in November remained below the levels observed at the beginning of the year. Mortgage rates increased in December: the average interest rate on a 30‐year fixed rate mortgage rose to 3.95 percent from 3.92 percent in November.

    In the fourth quarter of 2017:
    • Borrowers completed 6,309 refinances through HARP, bringing total refinances from the inception of the program to 3,484,025.
    • HARP volume represented one percent of total refinance volume.

Year to date through December 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 five or more percent of total refinances in Nevada and Florida ‐‐ more than double the two percent of total refinances nationwide over the same period.
  • In December, 5 percent of the loans refinanced through HARP had a loan‐to‐value ratio greater than 125 percent.
  • 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 September 30, 2017.
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