The latest report on the government’s refinance program showed sustained activity, and even newer data suggest three more months of continued strength.
Originators of Fannie Mae and Freddie Mac loans generated 463,591 refinances during April.
Activity inched up from March, when refinance production was 461,652 units, and soared from the same month last year, when a revised 267,606 refinances were closed.
Fannie was responsible for 284,658 refinances during April 2013, while Freddie’s share totaled 178,933.
The weekly U.S. Mortgage Market Index from LoanSifter and Mortgage Daily for refinances averaged 165 in April then increased to 179 in May and 182 in June. The index reflects the average volume of pricing inquiries per user of LoanSifter’s pricing engine and is an indication of closed loan production for the upcoming month.
Elevated activity in the index was the result of procrastinating refinance borrowers who have been prompted by fast-rising rates to move forward with a refinance transaction before interest rates soar beyond levels that still make sense.
The latest MMI activity suggests that FHFA’s upcoming refinance reports might indicate similar or higher refinance production levels for May, June and July.
However, during the first week of July, the Refinance MMI tumbled to 99. The decline was impacted by a holiday week.
Refinances closed through the Home Affordable Refinance Program accounted for 106,910 of the latest month’s activity.
HARP production jumped from 98,982 a month earlier and 53,343 a year earlier.
April’s HARP activity included 60,990 transactions with loan-to-value ratios of more than 80 percent and up to 105 percent; 24,141 mortgages with LTVs higher than 105 percent and up to 125 percent; and 21,779 refinances with LTV ratios in excess of 125 percent.
California was the location of properties securing 14,448 HARP refinances during April, more than any other state.
Florida’s 12,692 HARP transactions followed, then 7,554 in Michigan, 6,416 in Georgia and 6,244 in Illinois.
Since the program was originally launched in April 2009, there have been 2,566,239 HARP refinances closed.
Out of the 316,951 program-to-date HARP loans closed with LTV ratios greater than 125 percent, 55,131 were for investment properties, while 11,130 were second home loans and 250,690 were for mortgages on primary residences.
