Refinance Report - Third Quarter 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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