FHFA: Refinance Volume Continued to Slow in Fourth Quarter

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that 13,220 borrowers refinanced their mortgages through the Home Affordable Refinance Program (HARP) from October through December.  FHFA’s fourth quarter Refinance Report also shows that total refinance volume fell in December, as mortgage interest rates increased.  Total HARP refinances now stand at 3,447,671 since inception of the program in 2009.

According to new data released today, 194,324 borrowers could still benefit financially from a HARP refinance as of the third quarter of 2016.  These borrowers meet the basic HARP eligibility requirements, have a remaining balance of $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates.  These borrowers could save, on average, $2,400 per year by refinancing their mortgage through HARP.  See the new, updated U.S. map showing the number of HARP-eligible borrowers by state, Metropolitan Statistical Area, county and zip code.  HARP expires Sept. 30, 2017.

Also in the Refinance Report:

  • The number of total refinances in the fourth quarter of 2016 was 750,769.
  • Through the fourth quarter of 2016, 27 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.
  • Nine states and one U.S. territory accounted for more than 60 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance:  Florida, Illinois, Michigan, Ohio, Georgia, New Jersey, Pennsylvania, Puerto Rico, New York and California.
  • More than 2.8 million HARP refinances were for primary residences.

Link to Refinance Report
Link to HARP.gov

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