A sharp reduction in mortgage interest rates over 2019 increased the benefit of refinancing for recent borrowers, and as a result the median age of refinanced mortgages dropped to just two years in the third quarter, a 16-year low. That cut available equity and pushed the cash-out refinancing share down to 45%. A further drop in rates this year should boost refinancing demand from older mortgages, but tight lending standards rule out a large rise in the value of cash-out refinances over the next couple of years.
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