Tag Archives: cash-out refinance

“Despite the resurgence in tappable equity among U.S. mortgage holders, elevated interest rates are making homeowners reluctant to extract that wealth,” said Andy Walden ICE’s VP of Enterprise Research.

"August was another rough month for mortgage borrowers from an interest rate perspective," said Andy Walden, VP of Enterprise Research and Strategy at Black Knight, now a part of ICE.

Researchers from Finance of America Reverse report that a lack of education about their options could be preventing Americans’ use of their homes as both a shelter and financial springboard.

According to Mortgage Capital Trading, rate/term refinance volume was down 21.88%, cash-out refinance volume was down 21.77%, and lock activity in total was down 15.87% in total compared to April.

However, in good news for buyers, mortgage rates averaged 6.38% in April, a full 17 basis points lower than was reported in March.

As many seniors expressed worry about high interest rates, some 90% said they still want to age in place, but a new Point study revealed mounting costs for home improvements may be necessary in order to stay put.

The American Enterprise Institute and Center for Responsible Lending are jointly warning borrowers that cash-out refinances may worsen their financial stability for years to come by shouldering monthly payments that are significantly higher.

The latest Mortgage Monitor Report published by Black Knight revealed that, even amid typical seasonal downturns, rate lock volumes declined to record lows in year-end data.

"With interest rates now at their highest level in 20 years, the refi market is rapidly approaching a bottom," said Scott Happ, President of Optimal Blue, a division of Black Knight.

Climbing interest rates drove down rate lock volumes across the board in September, but the largest decline was seen—once again—in locks on rate/term refinance loans.