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Refinance Report

Refinance Report - Second Quarter 2017

Published: 8/17/2017

Second Quarter 2017 Highlights

  • Total refinance volume increased in June 2017 as mortgage rates fell in May. Mortgage rates continued to decrease in June: the average interest rate on a 30-year fixed rate mortgage fell to 3.90 percent from 4.01 percent in May.

In the second quarter of 2017:

    • Borrowers completed 9,707 refinances through HARP, bringing total refinances from the inception of the program to 3,470,804.
    • HARP volume represented 3 percent of total refinance volume.
Year to date through June 2017:

    • Borrowers with loan-to-value ratios greater than 105 percent accounted for 19 percent of the volume of HARP loans.
    • Twenty-five 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.
  • In June 2017, 6 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 60 percent of the nation's HARP eligible loans with a refinance incentive as of March 31, 2017.
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