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Refinance Report

Refinance Report - October 2016

Published: 12/15/2016

October 2016 Highlights 

 

Total refinance volume increased in October 2016 but remained well above levels observed earlier in the year as mortgage rates in September hovered near lows last observed in 2013. Mortgage rates increased in October: the average interest rate on a 30-year fixed rate mortgage was 3.47 percent.

In October 2016:

  • Borrowers completed 3,986 refinances through HARP, bringing total refinances from the inception of the program to 3,438,437.
  • HARP volume represented 2 percent of total refinance volume.
  • Four percent of the loans refinances through HARP had a loan‐to‐value ratio greater than 125 percent.
Year to date through October 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 refinance for underwater borrowers were for shorter-term 15- and 20‐year mortgages, which build equity faster than traditional 30‐year mortgages.
  • HARP refinances represented 7 or more percent of total refinances in Nevada, Florida and Georgia, more than 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.
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