Refinance Report - Second Quarter 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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