The data show that the median interest rate reduction during the fourth-quarter 2012 period was 1.8%, representing a 33% reduction in the previous rate. This was the largest percentage reduction in 27 years.
Eighty-four percent of borrowers’ refinances either reduced or maintained their debt, a percentage just shy of the 85% record set in the fourth quarter of 2011.
Net inflation-adjusted dollars converted to cash through the refinancing process during the period totaled $8.1 billion, a stark contrast to the record $84 billion seen at the market’s peak during the second quarter of 2006.
Depreciation for Home Affordable Refinance Program loans during the period, which had a median age of 5.9 year, was 29%.Thirty-year loans refinanced through this program into new 30-year products saw their rates reduced on average by 2%.
Non-HARP loans refis, which had a median age of 3.7 years, saw little or no fluctuation in median property value although depreciation did vary by region.
