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US Home Cash-Out Refinancing Falls to Lowest Since 2000 After Fed Hikes

  • Second-quarter share of cash-out refinances drops to 17%
  • Mortgage rates have surged, minimizing appeal of this option

Homes in Miramar, Florida. 

Photographer: Joe Raedle/Getty Images
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US interest-rate hikes have dented a key source of consumer funds — home-equity build-ups.

Cash-out refinances — where property owners borrow against the equity in their homes — fell to less than 17% of total mortgage loans in the second quarter, the smallest since late 2000, data released Tuesday by the Federal Housing Finance Agency showed.