FHFA Report – November 2013: Top 10 HARP Refinance States
According to the Federal Housing Finance Agency (FHFA) and the most recent report put out in HARP Refinance activities for November 2013. HARP refinances have continued to decrease as mortgage rates are at a range of four to four and a half percent since June 2013. The average interest rate in a 30 year fixed rate mortgage reached a 4.26 percent.
Despite the decline in HARP Refinance volume, states like Florida, California, and Michigan are still pushing for a reduced mortgage rate through the HARP program. In November, there were 38,732 refinances completed through HARP adding up to a total of 3,027,937 since the program’s inception.
Among the total amount of HARP refinances since inception, the top 3 states alone contributed the most with a total of 891,696. The breakdown total for each state is:
California = 411,647
Florida = 278,239
Michigan = 201,810
HARP’s main goal is to target responsible homeowners who are underwater on their mortgages but have no delinquencies on their monthly payments. The traditional refinance program’s LTV limitation capped off at 105%, so by removing this roadblock, HARP is now able to help homeowners with an LTV of 125% or greater.
The program has proven to be successful since an extension of the deadline for the program was granted, extending to December 2015 as opposed to 2013 allowing more time for more homeowners to learn and take advantage of the program. The top 10 states highest in LTV of greater than 125% that have refinanced through the program (Year-to-Date November 2013) are:
1) California – 110,320
2) Florida – 102,552
3) Michigan – 57,100
4) Georgia – 51,802
5) Illinois – 49,598
6) Arizona – 40,839
7) Ohio – 34,606
8) Washington – 27,685
9) Maryland – 23,716
10) Virginia – 23,624
Year-to-Date November 2013, the total HARP refinances nationwide was 862,892 with LTV greater than 125%. California, Florida, and Michigan definitely made a difference in this significant volume with 269,972 altogether. From inception to November 2013, 2,562,708 of the 3,027,937 HARP loans are all primary residences, 97,204 came from second homes and investment properties were made up of 368,025.
For the month of November 2013 alone, there were a total of 38,732 HARP loans. The breakdown LTV distribution nationwide for HARP refinances are:
80% – 105% = 25,689
105% – 125% = 7,612
Greater than 125% = 5,431
The HARP Refi program has come along way and is definitely expected to increase as 2015 draws closer.
