Homes as an ATM; are we there yet?

Reversion to the norm is typical. That's why it's called "reversion to norm." So, now it's the case that having become significantly more stable in the past few years, housing finance is reverting to norms, including in the area of cash-out refinances.

CNBC correspondent Diana Olick reports on a new Black Knight Financial Services analysis that asserts that more than four out of 10 home refinance borrowers are taking more cash out of the equity of their homes as they reset their interest rates lower. Are they using what averages out to about $60,000 in fresh cash for cars and vacations? Per Olick, apparently not:

Borrowers are typically using the equity for home repairs, education and medical costs, not for vacations or extravagances as was the case a decade ago. It seems they would rather use their home as a savings account, not a checking account.

Remodelers, take note.

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