Refinances Reaping Less Money

About 9% of Freddie's customers were able to reduce loan balances -- the largest cash-in share since the summer of 2005. Freddie Mac Chief Economist Frank Nothaft says the trend reflects "more cautious underwriting by lenders," who required customers to pay down some of their loans before offering a lower rate.

Freddie Mac and its counterpart Fannie Mae(FNM Quote) are government-sponsored mortgage lenders that own or insure almost half of the $12 trillion U.S. residential mortgage market, according to Bloomberg.

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