Monthly refinance volume of Fannie Mae and Freddie Mac mortgages soared to the highest level in eight months, and activity could pick up as rates continue to fall.
An analysis of data released Monday by the Federal Housing Finance Agency indicates that there were 167,140 Fannie and Freddie loans refinanced during March.
It was the most monthly refinances of home loans backed by the government-sponsored enterprises since July 2015, when there were 198,081 mortgages refinanced.
Refinance activity substantially picked up at the pair of secondary lenders compared to the previous month,
when there were 130,076 loans refinanced.
With Freddie reporting last week that 30-year fixed rates averaged 3.57 percent — the lowest since the week ended May 16, 2013 — odds are that GSE refinances will continue to escalate.
But volume slowed from March of last year, when a downwardly revised 203,340 conventional agency mortgages were refinanced.
Refinances of Washington-based Fannie loans numbered 99,268 in the most-recent month, leaping from 79,528 in February.
There were 67,872 of McLean, Virginia-based Freddie’s loans refinanced in March, surging from 50,548 the previous month.
Mortgages refinanced through the Home Affordable Refinance Program accounted for 7,326 of March 2016’s total volume.
HARP production increased from 6,424 a month earlier but fell short of the 10,383 loans refinanced a year earlier.
Since the program was introduced on April 1, 2009, there have been 3,400,543 HARP refinances.
An estimated more than 325,000 borrowers who could benefit from a HARP refinance but have not
moved forward could save an estimated $2,400 average per year each through the program.
HARP expires at the end of this year.
