Cash-Out Mortgage Refinancings Rise as Owners Tap Into Equity Bonanza
Homeowners are turning to cash-out refinances after a record-setting advance in home values.
December 2, 2021 3 MIN
Homeowners are turning to cash-out refinances after a record-setting advance in home values.
Mortgage rates fell from an 18-month high as the bond markets reacted to news about a new "variant of concern" in the Covid-19 pandemic.
The Conference Board’s measure of consumer conficence fell this month as rising Covid-19 infections soured the nation's outlook.
A federal regular on Tuesday increased the size of mortgages eligible for backing by Fannie Mae and Freddie Mac after a record-setting surge in home prices.
The volume of signed contracts to purchase homes jumped as Americans rushed to secure financing before mortgage rates rose higher.
New-home sales in October rose to the highest level since April, according to a Commerce Department report.
Existing home sales in October rose to the highest level since January, according to a Monday report from the National Association of Realtors.
Rates rose after a report showed inflation spiked to 6.2% in October as supply-chain bottlenecks caused by the pandemic fueled price increases.
Residential builders are still being challenged by a lack of materials and workers, said Mark Vitner, a Wells Fargo senior economist.
"Red-hot demand for workers" will send U.S. jobless rate tumbling, the economists said.
Homebuilder confidence rose in November, the third consecutive month of gains, despite supply-chain bottlenecks that slowed deliveries.
Consumer confidence fell in November to the lowest level in a decade as inflationary concerns weighed on the mindsets of Americans.
Sales of previously owned homes in April dropped to the lowest level since the start of the pandemic, the National Association of Realtors said.
If builders were able to double this year’s increased pace of new home production, it still would take five to six years to close the gap, according to a report from Realtor.com.
The number of days it took to close mortgages backed by the VA dropped to a 10-month low in July, led by a faster time frame for refinancings, according to a report from ICE Mortgage Technology.
Mortgage rates are rising as the investors who influence housing finance react to a Fed decision to taper bond purchases that supported the economy during the pandemic.
