The anticipated number of homeowner mortgages to be issued nationally in 2009 has been dramatically reduced under new lowered predictions by the mortgage banker’s association (MBA). The main reason for the diminished expectations, other than an initial erroneous prediction, is the thus-far disappointing performance of the Home Affordable Refinancing Program (HARP). Due to a number of appealing alternatives, owners and lenders are far short of reaching the 4-5 million home refinancings hoped for by Congress. Only 13,000 HARP refinancings have been completed so far. As interest rates begin to rise, non-HARP refinancing options will lose much of their appeal, possibly driving more refinancing into the HARP program.
Re: “Obama refis: Slow out of the gate”, from CNNMoney.com