Freddie: % of Equity-Tapping Refis Dives

Only 32% of the homeowners who refinanced their homes in the second quarter got a mortgage at least 5% larger than the original loan, the lowest percentage since Freddie Mac began tracking the statistic.The figure was down from 41% in the first quarter and down dramatically from 63% in the second quarter of 2002, the government-sponsored enterprise said in its quarterly refinance review. "It comes as no surprise that this figure of 32% represents the smallest [percentage] of refinancing homeowners to take cash out of their homes that we have seen since we began doing this report in 1985," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "Mortgage rates have fallen to such incredibly low levels that homeowners are refinancing now primarily for the low rates, rather than to take out equity." Freddie Mac can be found online at http://www.freddiemac.com.