Refinance Report - October 2018

October 2018 Highlights

Total refinance volume increased in October 2018 after falling throughout most of the year in response to rising mortgage rates. Mortgage rates increased in October: the average interest rate on a 30‐year fixed rate mortgage rose to 4.83 percent from 4.63 percent in September.

In October 2018:

• Borrowers completed 507 refinances through HARP, bringing total refinances from the inception of the program to 3,493,512.
• HARP volume represented 1 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 October 2018:

• Borrowers with loan‐to‐value ratios greater than 105 percent accounted for 16 percent of the volume of HARP loans.
• Thirty‐four 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, Georgia and Illinois compared to 1 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.

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.