Freddie Mac’s purchases of mortgage loans fell 26% in July from the prior month, which could indicate the pace of Home Affordable Refinance Program (HARP)refinancings slowed considerably in July.
The secondary market agency reported Friday morning that it purchased $32.5 billion in loans from mortgage lenders in July, down from $44.1 billion in June.
Refinancing volume totaled $23.1 billion, representing 71% of total loan purchases.
In its June report, Freddie Mac said loan purchases were bolstered by $8 billon in HARP refinancings. In Friday’s report, the GSE did not mention the HARP.
Overall, Freddie purchased 64,700 HARP refinances in June, up from 27,500 in May, according to a report by the GSE regulator.
Freddie also reported Friday that it issued $34.7 billion in MBS in July down, 24% from June.
On June 1, Freddie started securitizing HARP 2.0 loans with loan-to-value ratios greater than 125% for the first time and deliveries of those high LTV loans skyrocketed.
The GSE regulator said Freddie purchased 33,000 of those HARP 2.0 loans with LTVs above 125% in June, up from 960 loans in May.