MCLEAN, Va. – Nearly half – 45% – of loans owned by Freddie Macthat were refinanced in the fourth quarter 2003 resulted in newmortgages at least 5% higher in amount than the original mortgages.This compares, Freddie Mac's quarterly refinance review shows, toan upwardly adjusted 34% of refinanced loans that had higher newloan amounts in the third quarter 2003. A year ago, when fixed-ratemortgage rates were still dropping, 40% of refinanced loans werefor cash out, but the number of loans being refinanced was muchhigher. Freddie Mac Deputy Chief Economist Amy Crew Cutts said bythe fourth quarter 2003, “since most of those who could refinancefor lower rates have already done so, the later-year market becamemore attractive primarily to those who want or need to take equityout of their homes. Additionally, as mortgage rates began creepingupwards, the rate of refinancing began to drop off the record highsthat we experienced earlier in the year” Cutts added that, “Withinterest rates still averaging well below 6 percent, homeowners areusing cash out refinancing as an affordable way to financepurchases of durable goods, home improvements, and to pay downother forms of consumer debt.” According to Cutts, in 2003,homeowners put more than $100 billion worth of improvements andadditions in to their homes, contributing to the growth in homevalues and pushing the total value of homeowner equity to a newhigh of $7.9 trillion by the third quarter of 2003. The review alsoshowed that properties refinanced during the fourth quarter 2003had a median house-price apprecition of 12% during the time sincethe original loan was made. That compares to an 11% appreciationfor loans refinanced in fourth quarter 2002.