FHFA refinance activity declines

Rising mortgage rates fuel the drop

down button

Refinance volumes continued to decline in August as mortgage rates inched up from July levels.

A little more than 68,000 Fannie Mae and Freddie Mac mortgages refinanced through the Home Affordable Refinance Program in August, representing 23% of the total refi volume, the Federal Housing Finance Agency said in a new report.

Since the program’s launch in 2009, more than 2.8 million loans have successfully refinanced through HARP.

Of the loans that refinanced through HARP in August, 17% had loan-to-value ratios greater than 125%. 

When taking a look at year-to-date figures through August, borrowers with LTV ratios above 105% represented 42% of the HARP loan volume. In the same time period, 19% of HARP refinances for underwater borrowers were for 15- and 20- year mortgages, indicating a quick pace of equity growth for homebuyers.

In Nevada and Florida, two of the hardest-hit housing markets, HARP refinances represented 57% and 50% of total refinancing activity, respectively. This is more than double the 22% of total refinances throughout the country over the same time period.

States with the highest number of HARP loans since the inception of the program through August included, Nevada (26%), Arizona (23%), Florida (20%) and Idaho (16%).

Since the program’s launch, more than 2.4 million loans refinanced through HARP were tied to primary residents, while 92,599 were for second homes and 338,495 were for investment properties. 

Services Guide

Comments powered by Disqus