The Federal Housing Finance Agency (FHFA) has reported that the total volume of mortgage refinances increased slightly in June as mortgage rates decreased from May, according to FHFA's Second Quarter 2014 Refinance Report. Total refinance volume for the second quarter topped 344,000, while refinances through the Home Affordable Refinance Program (HARP) exceeded 54,000.
Since 2009, more than 19.5 million mortgage refinances have been completed through Fannie Mae and Freddie Mac, including more than 3.1 million through HARP. FHFA estimates that as of first quarter 2014, there are roughly 810,069 borrowers who are still eligible and have a financial incentive to refinance their homes through HARP. Nationwide, these borrowers could save an average of almost $2,300 per year on their mortgage. In an effort to reach these borrowers, FHFA recently held town-hall style events in Chicago and Atlanta with local community and civic leaders, who are sharing information about HARP with homeowners. FHFA is planning future HARP outreach events for Detroit and Miami. See the U.S. map of HARP-eligible borrowers by metro area.
Also in the second quarter 2014 report:
►HARP volume represented 16 percent of total refinance volume in the second quarter of 2014.
►More than 25 percent of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent) were for 15- and 20-year mortgages through the second quarter.
►Year-to-date through June 2014, HARP continued to account for a substantial portion of refinance volume in certain states. HARP refinances represented 37 percent of total refinances in Georgia and 35 percent of total refinances in Florida, nearly double the 18 percent of total refinances nationwide over the same period.