FHFA Says GSE Refinance Volume Continued to Slow in First Quarter

The Federal Housing Finance Agency reported Fannie Mae and Freddie Mac completed 510,000 refinances were completed in the first quarter, a sharp drop from 750,767 in the fourth quarter.

The Agency’s first quarter Refinance Report also showed 3 percent (13,425) of mortgages refinanced from January through March were through the Home Affordable Refinance Program. Total HARP refinances now stand at 3.461 million since inception of the program in 2009.

The report (https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/Refi_1Q2017.pdf) said 137,594 borrowers could still benefit financially from a HARP refinance as of the fourth quarter. These borrowers meet 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.

Other report highlights:

–Total refinance volume fell in March as mortgage rates remained above levels observed in 2016.
–Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.
–Ten states accounted for more than 60 percent of the nation’s HARP eligible loans with a refinance incentive as of December 31.