Refinance Report - Second Quarter 2016

Second Quarter 2016 Highlights

• Total refinance volume increased in June 2016 as rates edged lower through May. Mortgage rates continued to decrease in June: the average interest rate on a 30-year fixed rate mortgage fell to 3.57 percent from 3.60 percent in May.

In the second quarter 2016:

• Borrowers completed 18,310 refinances through HARP, bringing total refinances from the inception of the program to 3,418,854.
• HARP volume represented 4 percent of total refinance volume.

Year to date through June 2016:

• Borrowers with loan-to-value ratios greater than 105 percent accounted for 22 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 9 or more percent of total refinances in Florida and Georgia, more than double the 4 percent of total refinances nationwide over the same period.

In June, 8 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.

Ten states accounted for over 60 percent of the nation's HARP eligible loans with a refinance incentive as of December 31, 2015.