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Rates are at their lowest level since about 1966 and people all over the country are finding that they can get "more house" for their monthly mortgage payment. As a result, the competition for housing is intense and this drives up prices. People who are not moving but are simply sitting tight in their homes are seeing the value of their homes soar, providing a tempting equity position for people who then figure they can borrow against that equity at a rate lower than any other source. This is a very handy way of rolling car debts and credit card debts over into a consolidated first mortgage loan, thereby lowering their interest rates substantially, lowering their total monthly outlay substantially (spreading it out over 15 to 30 years), and providing a tax deduction (mortgage interest is deductible, whereas car and credit card interest is not). Frankly, it would be foolish for a homeowner to let the opportunity pass.

On the other hand....
When interest rates begin their inevitable upward trek, guess what will happen to home values? Home values will decrease - - it has happened before, as recently as the mid '90s in this area - - and if the economy goes into the dumper for real (as opposed to Democrat / liberal news-media propaganda), then people will have home mortgage debt equal to or higher than what their homes are worth. If there is a flurry of foreclosures, the poop will hit the fan for sure. In any event, since loan-to-value ratios have stayed the same as always for new lending (typically 80% maximum for "cash out"), there could come a time where mortgage debt exceeds the total residential real estate value for entire regions. That is not a healthy scenario for investors.

"...it would be foolish for a homeowner to let the opportunity pass."

All of what you say rings true. If the majority of homeowners use this opportunity to lower their monthly outgo and invest or save the difference, great. I see too many people who use the increased cash flow just to buy more "goodies", wear out the debit card on a trip to the south of France or buy a Land Rover. I hope that's not the norm.