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The MReport Webcast: Monday 8/25/2014

The total number of mortgage refinances in the United States experienced a slight increase in June, though overall activity for the quarter was down, according to the Federal Housing Finance Agency's Second Quarter Refinance Report. The agency reported last week that Fannie Mae and Freddie Mac saw a combined 345,000 refinances last quarter, down from more than 371,000 in the year’s opening months. Activity through the Home Affordable Refinance Program was also weaker.

According to the FHFA, HARP-refinanced loans made up only about 15.7 percent of total GSE refinances in the second quarter, marking the first time in two years that HARP share has fallen below 20 percent. With activity on the decline, the agency estimates there are still more than 800,000 eligible borrowers who are eligible for the program and who have a financial incentive. In an effort to spur more refinances, the FHFA has recently held meetings in Chicago and Atlanta to educate borrowers about the program, with more events scheduled in the future.

Nationwide sales of flipped homes dropped both quarter-over-quarter and year-over year in the second quarter of 2014, according to a report from RealtyTrac. The company’s data shows about 31,000 homes were flipped in April, May, and June, meaning they were sold after being bought less than a year ago. That number represents a 22 percent decline from the first quarter and a 26 percent drop from last year. The decline came as profit margins on flipped homes also fell, dipping to an average 21 percent gross return from last year’s peak of 31 percent. With the latest decline, RealtyTrac vice president Daren Bloomquist says home flipping is now settling back into a more historically normal pattern.

 

About Author: Jordan Funderburk

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