Fannie Reports On April Refinancing

Mae's refinance volume fell in April but remained elevated at $45.5 billion, the government-sponsored enterprise (GSE) said in its monthly report last week. The GSE expects refinance volumes to remain above historical norms, but says they might fluctuate on a month-to-month basis due to a variety of market factors. Both Fannie and Freddie Mac began accepting refinances originated under the Making Home Affordable program in April, and Freddie Mac said last week that its refinance-loan purchase volume totaled $43.3 billion in April. Low interest rates are a driver of refinancing, the GSEs say, but bond yields caused mortgage rates to rise for the week ending May 28. "We expect that the MHA program will bolster refinance volumes over time as major lenders adopt necessary system changes and consumer awareness," a Fannie press statement says. Mortgage-backed securities issuances were $56 billion in April, driven largely by refinancing volume. Liquidations remained elevated, at $56.3 billion. The company's gross mortgage portfolio declined at a compound annualized rate of 19.2%. SOURCE: Fan


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