Fannie Mae and Freddie Mac refinanced more than 3.5 million mortgage loans through September of this year, according to the government-sponsored enterprises' (GSEs) regulator, the Federal Housing Finance Agency (FHFA).
In September, approximately 262,000 mortgages were refinanced - a drop from the volume of the preceding month - with mortgage rates still higher than levels observed in the spring.
According to the FHFA report, refinance volume decreased from August to September as the average interest rate on a 30-year mortgage in July and August - 5.22% and 5.19%, respectively - were at a level higher than the rates observed earlier in the year.
In July, the FHFA announced the expansion of the GSEs’ Home Affordable Refinance Program to allow borrowers with loan-to-value ratios up to 125% to participate. Fannie Mae began accepting deliveries of refinanced whole loans with LTVs between 105% and 125% on Sept. 1 and began accepting mortgage-backed securities (MBS) for loans with the same range of LTVs on Oct. 1.
Beginning Oct. 1, lenders began delivering HARP loans with LTVs between 105% and 125% to Freddie Mac.
