WASHINGTON–Nearly half of Americans who refinanced their homes during the first quarter of this year chose the cash-out option, according to new data released by Freddie Mac.
That is the highest level since the fourth quarter of 2008.
Still, that figure remains far below the near-90% peak for cash-out refinancings that was seen just prior to the mortgage crash, but is still up significantly from a low of just 12% in 2012, said Freddie Mac.
The growth in refinancings comes as mortgage rates have remained near record lows while home values have rebounded and risen sharply in many markets.
Freddie Mac said cash-out refinancings in the first quarter of 2017 represented about $14 billion in net home equity, compared to the more than $80 billion in each of three quarters during 2006. During 2016 Freddie Mac said homeowners cashed out $61 billion, versus $321 billion in 2006.