Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (8195)	8/11/2006 11:25:41 PM
From: TobagoJack	Respond to of 217753

Seeker, I found the opportunity :0) Wow, there is supposed still plenty of equity in homes, but this is not good for the health of the US Consumer.... Refinancing at higher rates in order to take out equity from their home? What are they thinking? www2.pimco.com Q: Homeowners have helped to sustain U.S. economic growth by withdrawing equity from their homes to fuel consumer spending. Has the rise in interest rates hurt homeowners' ability to extract equity from their homes? Simon: In the first quarter of 2006, Freddie Mac data showed that 88% of refinancing was equity take-out refinancing, which is about the highest it's ever been. Even more interesting, and something we've never seen before, was the fact that in more than 50% of the equity take-out refinancings, the homeowner refinanced into a higher rate to take out equity. So people continue to literally use their houses as an ATM machine. Recommendation: set up the machine gun nests and mine fields, and put out the welcome signs :0)