Ads
Refinancing Stronger Than Ever
Freddie Mac, the second-largest mortgage finance and home funding company in the U.S., reported that loan refinancing in the second quarter this year had touched a 16-year high of 88 percent. The new loans were at least 5 percent higher than the original balances owed by Freddie Mac’s consumers.
Refinancing activity has been stronger than usual because of the incentives being provided to consumers to cash out on their home equity, says Frank Nothaft, Freddie Mac vice president and chief economist.
Amy Crews Cutts, Freddie Mac's deputy chief economist, expects cash out activity to remain strong throughout the remainder of the year, in proportion to the slow but gradual rise of interest rates. More home equities are taken out due to the rise in short-term interest rates such as the prime rate, she adds.
The company’s quarterly finance review pegged the percentage of consumers taking cash out of home equity in the first quarter at 86. As much as $81 billion was cashed out during the second quarter of 2006, an increase from the $74.1 billion cashed out during the first quarter, according to Freddie Mac.
--
Did you enjoy this post?
Comments
Post a comment
« Cash-Out Refinance Fraud | Main | The Changing Face of Cash-Outs »
Syndicate
Comments