Unlocking the Value of Your Home: A Growing Trend in Cash-Out Refinancing

Unlocking the Value of Your Home: A Growing Trend in Cash-Out Refinancing

US​ homeowners ⁣have record equity

Record levels of ⁣equity are currently held by U.S. homeowners, with ⁢recent data showing a reluctance to ⁢tap⁤ into it due to higher interest ‍rates. However, there⁢ has been a shift in this trend.

In the third⁣ quarter⁣ of ⁣this‍ year, mortgage holders accessed $48 billion in home equity, marking the highest volume in two years since ​the Federal Reserve ‍began raising its benchmark interest rate.⁤ While mortgage ⁢rates ‌do not directly mirror the Fed’s rate, HELOCs are‍ influenced by it. The Fed’s recent ⁢rate cut of half a percentage point in⁤ mid-September has had ⁣an impact.

Despite these changes, ⁢homeowners remain cautious about utilizing their equity.

Collectively, they hold over $17 trillion ⁤in total ⁤equity, with ⁤approximately $11 ⁢trillion available for borrowing⁣ as long ⁤as 20% equity remains ⁢in their homes – a requirement set⁣ by most lenders. On average, ​homeowners have $319,000 in equity, of which $207,000 is accessible.

An aerial…

2024-11-04 14:01:54
Article ⁤from‌ www.cnbc.com

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