Including home buying and selling, commercial, international, NAR member information, and technology. Use the data to improve your business through knowledge of the latest trends and statistics.
Stay current on industry issues with daily news from NAR. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR.
Including home buying and selling, commercial, international, NAR member information, and technology. Use the data to improve your business through knowledge of the latest trends and statistics.
Stay current on industry issues with daily news from NAR. Network with other professionals, attend a seminar, and keep up with industry trends through events hosted by NAR.
The Home Affordable Refinance Program (HARP) was initiated in April of 2009 as a means for homeowners to take advantage of lower mortgage rates. Refinances have the double benefit of reducing the likelihood of default by making payments more affordable as well as boosting personal spending and the economy. Only homeowners with mortgages owned by Fannie Mae or Freddie Mac can participate in HARP.
The program had limited initial success as the sharp price declines in the hardest hit areas resulted in average loan-to-value ratios above the program's cap of 125%. In December of 2011, this cap was eliminated and program participation surged, particularly among underwater borrowers.
Not surprisingly, the top three states among underwater HARP refinances as a share of total refinances were Nevada, Florida, and Arizona. The wave of refinances has helped to stabilize the distressed market and home prices, in turn boosting homebuyer confidence and demand. However, it may also extend the time that owners stay in their homes past the 6-year historical average resulting in slower turnover and exacerbating inventory shortages.