HARP Share of Refinances Reaches 32%, Highest Level

HARP Share of Refinances Reaches 32%, Highest LevelThe HARP share of refinance applications increased from 31 percent last week to 32 percent this week, the highest level since the Mortgage Bankers Association began tracking these  applications in February 2012.
HARP (Home Affordable Refinance Program)  targets deeply “underwater” borrowers whose mortgages are owned by Fannie Mae or Freddie Mac.
The program soared in popularity last year when previous loan-to-value restrictions were lifted, enabling borrowers who are current on their payments — but deeply in negative equity — to take advantage of historically low interest rates.
Overall, mortgage applications barely budged last week, increasing 0.2 percent from one week earlier — but that’s good news because applications for home purchases remain at the highest level since May 2010, according to the MBA.
The group’s Market Composite Index, a measure of loan applications for both purchases and refinances, increased 0.2 percent on a seasonally adjusted basis from one week earlier.
The two components were even: the Refinance Index increased 0.3 percent from the previous week. The Purchase Index was up 0.3 percent from one week earlier to the highest level in three years.
The refinance share of mortgage activity remained unchanged at 75 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,500 or less), decreased to 3.65 percent from 3.67 percent, for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages, with jumbo loan balances (greater than $417,500) decreased to 3.75 percent from 3.77 percent, for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.37 percent, for 80 percent LTV loans.

Leave a Reply

Your email address will not be published. Required fields are marked *