A new study shows the nation is nearing Great Recession levels of mortgage debt and mortgage refinancing and Arizona ranks No. 6 among states with the highest level of recent refinancing.
Cash-out refinancing helped cause the Great Recession. Americans are once again refinancing to take out cash for immediate needs _ such as cars or remodeling their house — and sinking further into debt, which could again become insurmountable if the economy worsens.
Refi Guide today released a study titled States With The Highest Levels of Recent Refinancing using data from Freddie Mac from 1990 to 2019 which shows many of the alarming trends appear to be repeating.
Arizona ranks No. 6 with 1.2% of all refinances in America since 2009 taking place there in Q1 2019.
Here are several key national findings:
• In the run-up to 2008, nearly 90% of refinances were cash-out events. By 2012, that number has fallen to just 12% but at the end of 2018 it exploded back up to 80%.
• Cash-out refinancing now makes up 76.6% of refinances in America.
• 10 States with Highest Levels of Recent Refinances: Alaska (3.7%), Nevada (1.7%), Idaho (1.2%), Texas (1.2%), Utah (1.2%), Arizona (1.2%), Florida (1.2%), Tennessee (1.1%), Colorado (1.1%) and Mississippi (1%)
• 10 States with Lowest Levels of Recent Refinances: Wisconsin (0.4%), Connecticut (0.5%), Vermont (0.6%), Iowa (0.6%), Hawaii (0.6%), Maryland (0.6%), Illinois (0.6%), Massachusetts (0.6%), Virginia (0.6%) and Washington DC (0.6%)
