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Refinance Report

Refinance Report - Third Quarter 2018

Published: 11/15/2018

Third Quarter 2018 Highlights

  • Total refinance volume decreased in September 2018 as mortgage rates in August remained above the levels observed in 2017. Mortgage rates increased in September: the average interest rate on a 30‐year fixed rate mortgage rose to 4.63 percent from 4.55 percent in August.

In the third quarter of 2018:

    • Borrowers completed 1,865 refinances through HARP, bringing total refinances from the inception of the program to 3,493,005.
    • HARP volume represented 1 percent of total refinance volume.

 Year to date through September 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, Michigan, Georgia and Illinois compared to 1 percent of total refinances nationwide over the same period.
  • In September 2018, 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 territory accounted for over 70 percent of the nation's HARP eligible loans with a refinance incentive as of June 30, 2018.

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