Published:
11/17/2016
Attachments:
Refinance Report Third Quarter 2016
Third Quarter 2016 Highlights
Total refinance volume increased in September 2016 as mortgage rates in August hovered at lows last observed in 2013. Mortgage rates increased in September: the average interest rate on a 30‐year fixed rate mortgage was 3.46 percent.
In the third quarter of 2016:
- Borrowers completed 15,597 refinances through HARP, bringing total refinances from the inception of the program to 3,434,451.
- HARP volume represented 2 percent of total refinance volume.
- Six percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.
Year to date through September 2016:
- Borrowers with loan-to-value ratios greater than 105 percent accounted for 21 percent of the volume fo 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 8 or more percent of total refinances in 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.