While you are home prices was indeed ascending and you may mortgage rates shedding, it was preferred for family equity to be extracted via refinancing to possess home improvements, costs costs, and you may general usage. Regardless of if this is well-known on subprime many years (20012007), it wasn’t a first reason behind evoking the massive defaults and you can property foreclosure one happened once each other home values and you can interest rates corrected its routes.
