Homeowners in the U.S. withdrew $63 billion in equity from their homes across more than 1.1 million cash-out refinances in the second quarter.
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Homeowners in the U.S. withdrew $63 billion in equity from their homes across more than 1.1 million cash-out refinances in the second quarter, the largest quarterly volume since mid-2007, according toBlack Knight.
Plenty more are considering doing a cash-out refi, too.
"The dynamics of the refinance market are changing, with a sharp shift away from rate/term refis to cash-out lending," said Scott Happ, Black Knight 's secondary marketing technologies president. "This shift tends to happen in any rising rate environment, never mind one in which American mortgage holders have more than $9 trillion in tappable equity available to them. While we did see cash-out locks tick down in October, the overall trend toward an equity-centric refi market remains strong and one we will continue to watch closely in the coming months."
According to data from Recursion Cos., the share of cash-out refinance in total new issuance for Freddie Mac in October rose to 49.7% from 48.3%, the highest level since May 2019. At the same time, the share of cash-outs in total new issuances for Fannie Mae increased to 43.7% from 40.6%.
LOs – how much demand are you seeing for cash-out refi products these days? And how many of your clients are using a cash-out refi to renovate their home? Please let me know anonymously by emailing me at jkleimann@housingwire.com.
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