home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Refinance News | Refinance Share Statistics
News about refinancing programs, pricing and production. Stories about the H o m e
Affordable Refinance Program, H A R P 2.0 and other Making Home Affordable coverage.


Cashouts Continue

Freddie survey indicates cashout on 72% of refinances

November 2, 2005

By MortgageDaily.com staff


Cashout activity in the third quarter maintained its pace and is expected to continue in high demand amidst falling refinance volume and rising rates.

Freddie Mac announced its third quarter Refinance Review indicated 72% of its owned refinance loans included cashout of at least five percent of the original mortgage. The share is unchanged from the revised second quarter, but much higher than 59% in the third quarter a year earlier.

The estimates were reportedly derived from a sample of properties on which Freddie has funded at least two successive loans.

Extraction of home equity through prime first-lien refinances of $60.4 billion was just $0.3 billion below the revised total in the second quarter, Freddie reported.

"The sharp rise in the cost of home equity lines of credit and the expectation that mortgage interest rates will go higher over the next year induced homeowners to look towards the refinancing option to extract home equity for home improvements or other investment purposes now," Freddie chief economist Frank Nothaft said in a written statement.

During the third quarter, interest rates for 30-year fixed-rate mortgages reportedly averaged 5.76%, compared to a 6.75% average in the prime rate, key to home equity lending and lines of credit.

The refi share of mortgage applications was a strong 44% in the third quarter, Freddie said.

"With the expectation that mortgage rates will rise further in the fourth quarter, refinance volumes overall should slow but cash-out refis will continue to be in demand," Freddie said.

For the year, Freddie expects home equity extraction of $204 billion -- about 44% above last year. In 2006, the number is estimated at $114 billion.

The "borrowers who have an incentive to refinance will largely be those seeking to exchange home equity for cash or those who are hitting the adjustment period on their adjustable-rate mortgages," the secondary lender added.

Properties refinanced during the third quarter experienced a median house-price appreciation of 23% during the time since the original loan was made, unchanged from the previous three-month period, according to the announcement.

The median age of original loans refinanced was reported at 2.6 years, one month older than the median age of refinances during the second quarter.


Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders