I think what he/she is trying to say, that people that want to refinance at lower rate are finding their equity went up in smoke. Their house isn’t worth what they owe on it.
Well, that woulda been easy to say!
I believe, but cannot point it out exactly, but I believe I read something recently that said about one third of residential mortgages in the country now were upside down.
That’s like 10+ million units.
In addition banks are only lending up to 75% of the homes value is what I was told when we closed on a loan recently.