Cash-Out Refi Surge and Affordability Questions as Prices Rise

Posted To: MND NewsWire

Black Knight Financial Services took close-up looks at both home affordability and the recent surge in cash-out refinancing in its new Mortgage Monitor released on Monday. The publication reflects data through the end of December 2015. The company said that there have now been 43 consecutive months of annual home price appreciation, causing it to revisit the question of affordability. Its analysts used national medians for home prices and household income levels and found the mortgage payment-to-income ratios still favorable by historic standards. Looking at median principal and interest payments in each October over the last 15 years the company saw those payments consuming 26 percent of median household income in 2000, rising to 33 percent at the peak of the bubble in 2006 before falling...(read more)

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