Refinancings were down slightly in the second quarter, as borrowers shied away from rising interest rates, the Federal Housing Finance Agency reported Sept. 3.
Fannie Mae and Freddie Mac had 279,933 mortgages refinanced through the Home Affordable Refinance Program in the second quarter of 2013; 294,300 mortgages were refinanced during the first quarter.
With mortgage interest rates rising sharply in June to 4.07 percent, compared to 3.57 percent in March, refinancings became less attractive to borrowers. HARP has resulted in 2.65 million refinancings since the program’s inception in April 2009.
Of the HARP refinancings in the second quarter, 19 percent had loan-to-value ratios of more than 125 percent. Figures through June showed that 18 percent of HARP refinances for underwater borrowers were shorter-term, 15- to 20-year mortgages, which build equity faster than 30-year mortgages.
HARP continued to account for a substantial portion of total refinance volume in certain states. Through the second quarter, HARP refinances represented 59 percent of total refinances in Nevada and 50 percent of total refinances in Florida, more than double the 21 percent of total refinances nationwide over the same period.
Underwater borrowers accounted for a large portion of HARP refinances in several states, representing more than 61 percent of HARP volume in Arizona, Nevada and Florida.
See the FHFA’s second quarter report.
Reposted from Appraiser News Online