Cha-ching. Americans are making serious money moves. Homeowners withdrew $36 billion in equity since the last quarter of 2018, hitting a 12-year high. Low mortgage interest rates have people feeling good about investing, and refinance volume was up 132% annually. A majority of the refinancing activity is from people reviewing existing loans, but a growing amount came from those wanting to see the cold, hard cash of their housing investment in their hands.
Near rock-bottom mortgage interest rates are behind a surge in refinance activity.
After hitting an 18-year low at the end of last year, refinance lending has nearly doubled over the past three quarters, according to Black Knight. In the third quarter of this year, refinance volume was up 132% annually to its highest level in nearly three years.
Most of the refinancing in the third quarter of this year was done by borrowers looking to improve their rate or the term on their current mortgage. But a growing number of borrowers are taking money out of their homes.
Cash-out refinances were up 24% since the last quarter of 2018 and made up 52% of all refinances. Homeowners withdrew a collective $36 billion in home equity, the highest amount in nearly 12 years.
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