Buyers Tapped Record Amount of Home Equity in Q4

From The Real Deal:

With home values surging, American homeowners are tapping their equity at a rate not seen since before the Great Recession.

Homeowners tapped a combined $80 billion in equity through cash-out refinancing in the fourth quarter of last year, according to mortgage data provider Black Knight — the highest amount in any quarter since 2007 and the fifth consecutive quarter in which more than 1 million cash-out refinances were originated.

Seems like a no-duh type of a situation given home prices going to the moon, but I do wish somebody would do some research on what these homeowners who used their houses like ATMs did with all that cash. Maybe they did it to keep not participating in the labor force. Or if they lived in California, maybe they filled up their gas tank once or twice.

I’m guessing quite a few of these homeowners bought investment properties with the cash-out refinancing proceeds. But that’s a pure guess. Maybe somebody reading this knows.

-rsh

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Rob Hahn

Rob Hahn

Managing Partner of 7DS Associates, and the grand poobah of this here blog. Once called "a revolutionary in a really nice suit", people often wonder what I do for a living because I have the temerity to not talk about my clients and my work for clients. Suffice to say that I do strategy work for some of the largest organizations and companies in real estate, as well as some of the smallest startups and agent teams, but usually only on projects that interest me with big implications for reforming this wonderful, crazy, lovable yet frustrating real estate industry of ours.

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