05/09 Talking Points … Homeowners largely have not extracted any recovered equity in their homes, according to a survey by Freddie Mac. Borrowers with conventional loans pulled just $6.5 billion out of their homes during the first quarter through cash-out refinancing, down from $6.7 billion during the prior quarter. Cash-out refinancing has been lower only in three quarters since mid-2000, and when adjusted for inflation, cash-out refinancing since 2010 has been near its lowest levels since 1997. Cash-out refinancing surged during the housing bubble, reaching a high of $84 billion during the second quarter of 2006. But many borrowers ended up in a position where they owed more than their homes were worth, resulting in a painful pay-back that continues today.
Posted on: Fri, 09 May 2014 16:18:34 +0000
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