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Cash-out Refinances at Seven-Year High
Tuesday, March 8, 2016
Even as the share of originations going for refinancing began to flag in the fourth quarter of 2015 the cash-out share of those refinancing increased. Freddie Mac said that transactions in which the new mortgage exceeded the old by 5 percent or more made up 43 percent of all refinances done during the quarter, up from 39 percent in the previous quarter and 28 percent a year earlier. It was the highest cash out share since 2008.
Freddie Mac funded $76 billion in mortgage loans during the fourth quarter, down from $94 billion in the third quarter. In both quarters refinancing represented about 50 percent of that volume, $38 billion in the fourth quarter and $46 billion in the third. In the first two quarters the refinance share was over 60 percent.
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