2021 sees most pullback refinances in nearly two decades: Black Knight data

Home equity is at record highs, as are cash refinances, according to Black Knight. (iStock)

According to the last Mortgage monitor report of the black knight.

In the fourth quarter alone, borrowers hit a record $80 billion, marking the biggest quarterly volume in 15 years. It was also the fifth consecutive quarter of more than one million cash refinance loans, according to the report.

Data showed owners are now withdrawing more of their available capital than they were before COVID-19 in 2018 and 2019. But they’re only withdrawing at half the rate of what they were in 2006.

If you want to tap into the equity in your home, you can consider cash refinancing. Visit Credible to find your personalized interest rate without affecting your credit score.

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House price growth accelerates in January

The number of cash-out mortgage refinances has increased due to several factors, including an increase in home values ​​and low mortgage rates.

Home price growth accelerated for the third straight month in January, with the average home value rising 19% annually, according to Black Knight. This increase is just below the July record of 19.5%.

On a monthly basis, the average house price rose more than 1% in January. And the uptrend was dominant in most of the United States, with around 75% of major US markets seeing appreciation in home price growth.

Homeowners can take advantage of this growth through cash refinancing to potentially lower their monthly mortgage payments and get cash out of their home. Visit Credible to compare multiple mortgage lenders at once and choose the one that suits you best.

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Mortgage rates rise at fastest pace since 2013

Interest rates have risen sharply in recent weeks, accelerated by the Federal Reserve’s gradual reduction in its obligationpurchasing program and its decision to raise the federal funds rate. The average 30-year mortgage rate has risen 70 basis points since the start of the year, according to Black Knight’s Optimal Blue dataset.

In fact, that rate of increase hasn’t happened for 30-year rates since the “Taper Tantrum” in 2013, according to the report. At the end of February, there were about 3.8 million homeowners who could lower their monthly payment through refinancing, about 65% less than the 11 million who could do the same in December.

“Rising mortgage rates and rapidly rising home prices will continue to accelerate the transition from a refinance-centric loan market to a purchase-centric loan market, as well as a rates toward an equity-centric refinance market,” Black Knight said in its report.

If you’re interested in refinancing your mortgage or getting cash out of your home while mortgage rates remain low, contact Credible to speak to a mortgage expert and get all your questions answered.

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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