With mortgage rates remaining slightly above record low levels, refinance volumes dropped slightly in May, after remaining high in April

A little more than 84,640 Fannie Mae and Freddie Macmortgages refinanced through the Home Affordable Refinance Program in May, representing 20% of total refinance volume. Total refinances for Fannie and Freddie hovered around the 418,000-mark in May. 

The total number of HARP refinances from the inception of the program now totals 2.65 million, according to the Federal Housing Finance Agency

Of the loans that refinanced through HARP in May, 19% had a loan-to-value ratio greater than 125%.

When taking a look at year-to-date figures through May, borrowers with LTV ratios above 105% represented 44% of the HARP loan volume. In the same time period, 18% 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, markets that analysts have been keeping an eye on since the recovery began, HARP refinances represented 60% and 51% of total refinances, respectively. This is more than double the 21% of total refinances throughout the country over the same time period. 

Underwater borrowers in Nevada, Arizona and Florida represented 62% or more of HARP volumes. 

States with the highest number of HARP loans since the inception of the program through May, included California (368,905), Florida (235,223), Michigan (178,035), Illinois (175,521) and Arizona (130,894). 

Since the program’s inception, 2.27 million loans refinanced through HARP were for primary residences, 84,889 were for second homes and 288,958 were tied to investment properties.

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