The Housing ATM is back – Cash-out share of all refis hits pre-crisis levels.
ByIt was only a matter of time that people started using their homes as ATMs. It is clear that the housing cheerleaders are drinking a mega dose of housing Kool-Aid and somehow think that people are immune from repeating past mistakes. But here we are seeing cash-out refis hitting pre-crisis levels. And this assumption is based on the underlying mentality that yes, a home is really worth that amount and now people are locking in these high price levels. But guess what? You have to pay that money back on your glorified crap shack. This was one of the many reasons for the last housing bubble where people believed the hyped and went into deeper debt because of this notion that a home was an ATM with a roof on it. The overall tone is incredibly housing positive even though there are major issues in the housing market. For example, the homeownership rate is near generational lows and much of the household formation since the bubble burst has come in the form of rentals. Now homes are being used as ATMs. What can go wrong?…
The Housing ATM is back – Cash-out share of all refis hits pre-crisis levels.
