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30 FHFA: HOME PRICES RISE 1.3 PERCENT Despite disappointing home sales in the first quarter of the year as winter storms took their toll, home prices increased 1.3 percent over the first three months of the year on a seasonally adjusted basis for the purchase-only market, according to the Federal Housing Finance Agency (FHFA). "Although the first quarter saw relatively weak real estate transaction activity—in part due to seasonal factors—home prices continued to push higher in the first quarter," said Andrew Leventis, principal economist for FHFA, with the release of the agency's House Price Index. Leventis cited the "modest inventories of homes available for sale" as a major factor in the first- quarter increase. While they rose 1.3 percent over the quarter, first-quarter prices were 6.6 percent higher than prices recorded in the first quarter of last year, ac- cording to FHFA. is compares to just 0.8 percent growth in the price of other goods and services. When adjusted for inflation, first-quarter home prices were 5.7 percent higher than they were one year ago. Home prices rose in 42 states and the District of Columbia throughout the first quarter of the year. On an annual basis, only one state posted a price decline over the year in March—Vermont, with a 1.24 percent decline. Nevada ranked highest for annual price ap- preciation in March, with a 20.96 percent rise. e District of Columbia (19.78 percent) ranked second, followed by California (15.78 percent), Arizona (14.72 percent), and Florida (10.65 percent). Among the nine Census divisions, FHFA noted "substantive decelerations" in prices over the past year in the two divisions that posted the great- est price gains over the previous year. In the Pacific division, prices increased 12.4 percent over the year in March after posting a 15.8 percent gain over the year in March 2013. In the Mountain division, prices increased 9.8 percent over the year in March, down from a 14 percent gain a year earlier. e smallest price gain was recorded in the Middle Atlantic division, where prices rose 2 percent. is price gain matches that of a year ago. No division posted a decline in prices over the year in March. Of the 100 largest metropolitan areas, the Charleston metro posted the greatest price gain compared to last year's first quarter: 10.7 percent. e lowest price increase took place in the New Orleans metro area, where prices declined 2.6 percent over the year. FHFA also tracks "distress-free" home prices in 12 large metros, which excludes sales of bank- owned properties and short sales. In nine of the 12, the distress-free index reported lower price appre- ciation than the traditional purchase-only indexes. e agency's index came out the same day as the Case-Shiller Home Price Indices, which showed prices up 12.4 percent in 20 of the nation's biggest markets—a slight cut from a 12.9 percent increase recorded in February. HARP REFINANCES TOTAL 77,000 IN Q1 2014 e Federal Housing Finance Agency (FHFA) released its latest Refinance Report, looking at data from the first quarter of 2014. e government agency reported that in Q1 2014, approximately 77,000 refinances were completed through the Home Affordable Refinance Program (HARP), bringing the total refinances through HARP to 3.1 million since the program's inception. Total refi volume decreased in March, dropping to levels last seen in 2008. HARP was initially set to expire on December 31, 2013, but was extended to expire on December 31, 2015, in order to continue helping homeowners underwater on their mortgage. e first quarter of 2014 marks the fourth straight quarter that total refinances and HARP refinances have declined. e report attributed the decline in refis to March's rising interest rates. e total volume of HARP refinances was 21 percent of all refinances for the quarter, with 12 percent of loans refinanced through HARP with a loan-to-value ratio greater than 125 percent. In the first quarter of 2014, 23 percent of HARP refinances for underwater borrowers were for shorter-term, 15- and 20-year mortgages. e remaining 77 percent of loans were for the longer, more traditional 30-year note. According to the FHFA, borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not use the program. "Year-to-date through March 2014, HARP refinances represented 41 percent of total refinances in Georgia and 38 percent of the total refinances in Florida, nearly double the 21 percent of total refinances nationwide over the same period," FHFA said. Other notable states with a large percentage of HARP refinances as a percentage of total refinances include Nevada (33 percent), Michigan (33 percent), and Illinois (31 percent).

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