FHFA: HARP Refinances Remain Steady Through Second Quarter

The Federal Housing Finance Agency said loans refinanced through the Home Affordable Refinance Program in the second quarter fell only slightly from the first quarter.   

The agency’s second quarter Refinance Report showed 31,561 HARP refinances completed between April and June, down slightly from 31,648 from January through March.  

FHFA said more than 3.3 million borrowers refinanced their homes through HARP since the program began in 2009; FHFA estimated as of March, more than 578,000 borrowers nationwide still have a financial incentive to refinance through the program.  

Other report highlights:

  • Through the first half of 2015, 29 percent of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent) resulted in 15- and 20-year mortgages, which helps borrowers build equity faster than traditional 30-year mortgages.
  • Top five states with the highest number of total HARP refinances completed thus far in 2015 are Florida, California, Illinois, Michigan and Georgia. 
  • States with the highest level of HARP refinances as a percentage of total refinances so far in 2015 are Florida and Georgia.  

Borrowers must meet the basic HARP eligibility requirements, have a remaining mortgage balance of $50,000 or more, have a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates. Nationwide, FHFA said these borrowers could save, on average, as much as $200 per month on their mortgage payments, or $2,400 per year.   

Link to Refinance Report http://www.fhfa.gov/AboutUs/Reports/ReportDocuments/2Q15_Refinance_Report.pdf.  

This Week:  

  • Monday: Chicago Purchasing Managers Index; Dallas Fed Manufacturing Survey
  • Tuesday: Construction, Census Bureau; Institute for Supply Management Manufacturing Index; Dallas Fed Texas Retail Outlook Survey; Motor Vehicle Sales, MotorIntelligence
  • Wednesday: MBA Weekly Applications Survey; ADP National Employment Report; Productivity and Costs, Bureau of Labor Statistics; Manufacturer Shipments, Inventories & Orders, Census Bureau
  • Thursday: Initial Claims, Labor Department; Trade Balance, Bureau of Economic Analysis; Institute for Supply Management Non-Manufacturing Index
  • Friday: MBA Offices Closed (Labor Day Weekend); Employment Situation, Labor Department
  • Monday, Sept. 7: Labor Day holiday (MBA offices closed; MBA NewsLink will not publish)