Homeowners are taking advantage of high home equity gains through cash-out refinancing, reaching a three-year high in the second quarter. On average, homeowners pulled $94,000 in equity, raising their monthly payment by $590 and increasing their interest rate by 1.45 percentage points.

With rising home values, U.S. homeowners have a record $17.8 trillion in equity, with $11.6 trillion available for refinancing. Cash-out refinances made up 60% of all home loan refis in the second quarter, offering financial flexibility but also potential risks with larger loans and higher interest rates.

High mortgage rates have kept the U.S. housing market in a sales slump since early 2022. Home sales dropped to their lowest level in nearly 30 years, with prices continuing to rise nationally but at a slower pace in many metro areas, impacting home equity growth and tappable equity in some markets.

Read more at Yahoo Finance: Homeowners turn to cash-out refinancing to take advantage of big gains in home equity