Refinance Report - November 2018

November 2018 Highlights

Total refinance volume increased in November 2018 after falling throughout most of the year in response to rising mortgage rates. Mortgage rates increased in November: the average interest rate on a 30‐year fixed rate mortgage rose to 4.87 percent from 4.83 percent in October.

In November 2018:

• Borrowers completed 449 refinances through HARP, bringing total refinances from the inception of the program to 3,493,961. 
• HARP volume represented less than 1 percent of total refinance volume. 
• One percent of the loans refinanced through HARP had a loan‐to‐value ratio greater than 125 percent.

Year to date through November 2018:

• Borrowers with loan‐to‐value ratios greater than 105 percent accounted for 16 percent of the volume of HARP loans.
• Thirty-three 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.
• HARP refinances represented 2 percent of total refinances in Florida and Illinois compared to 1 percent of total refinances nationwide over the same period.
• Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.
• Nine states and one U.S. territory accounted for over 70 percent of the nation's HARP eligible loans with a refinance incentive as of June 30, 2018.