NOTE: I’m having trouble with my video editing software so no video until next week. -John
More Cash-Out Refis
U.S. Real Estate Week
Sat, Feb 6, 2016
- Despite some predictions that mortgage interest rates would rise in the aftermath of the Federal Open Market Committee’s December announcement of an increase to the federal funds rate for the first time since June 2006, the exact opposite has happened, with interest rates falling to a two-year low, according to a new report from Zillow.
- 42 percent of mortgage refinances last fall involved borrowers taking cash out of their homes, not just lowering their interest rates.
- That is the highest share since 2008
- “We see that in two years home affordability will be pushing the upper bounds of that pre-bubble average.”
- “… eight states would be less affordable than 2000-2002 levels within 12 months and 22 states would be within 24 months”
- These mortgages, which are given to borrowers that can’t fully document their income, helped fuel a tidal wave of defaults during the housing crisis and subsequently fell out of favor.
- Now, big money managers including Neuberger Berman, Pacific Investment Management Co. and an affiliate of Blackstone Group LP are lobbying lenders to make more of these “Alt-A” loans …
- With the launch of the Redfin Data Center, you can now visualize and download our real estate market data, which includes home prices, home sales and how many homes have hit the market.