According to Freddie Mac’s quarterly refinance analysis results, refinance activity in the first quarter of 2015 received a boost from low mortgage interest rates. Of all single-family mortgage originations during the first quarter, 63% were refinances. Borrowers that took advantage of the lower interest rates averaged a reduction of 1.2 percentage points on their interest rates. The average interest rate reduction for borrowers that used the Home Affordable Refinance Program (HARP) was 1.8 percentage points.
In both scenarios, homeowners that refinanced on a lower rate could see a significant cost savings in their mortgages. Freddie Mac’s Deputy Chief Economist, Len Keifer, stated, “We estimate that borrowers who refinanced in the first quarter will save on net more than $1.4 billion in interest payments over the first 12 months of their new loan.” Read more at http://mwne.ws/1IwvODo.