Cash-out refinance loans are in demand, representing 59% of all refinances in Q2 as homeowners withdraw record equity. Monthly payments for these loans increased by an average of $590. A significant portion of these borrowers accepted higher interest rates, averaging 1.45 percentage points, to access an average of $94,000 in equity. Tappable equity reached $11.6 trillion, covering approximately 48 million mortgage holders. However, equity growth has slowed, especially in certain U.S. markets, resulting in challenges for mortgage servicers and a drop in refinance retention rates.
Homeowners are actively drawing on record equity with cash-out refinance loans, marking increased demand despite elevated rates. Cash-out transactions accounted for 59% of all refinances in Q2.
Borrowers saw their monthly payments rise by about $590 on average, with 70% accepting higher interest rates in exchange for withdrawing an average of $94,000 in equity.
Tappable equity rose to a record $11.6 trillion, with 48 million mortgage holders accessing an average of $213,000 per borrower, though the pace of equity growth has slowed.
Nearly one-quarter of U.S. markets recorded at least a 5% decline in tappable equity, with challenges for mortgage servicers noted and refinance retention dropping to its lowest since mid-2024.
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