The Refi Boom Is
Officially Over -- And Won't Return Soon
A year after other economists made the same call, Freddie Mac has declared an official end to the refinancing boom that kicked off in the third quarter of 2008. The company determines the termination of a refi boom based on when purchase loans make up 50 percent or more of all mortgage applications. The threshold was reached the week of May 8 this year. Although refi volume has since crept back up, Freddie Mac chief economist Frank Nothaft acknowledges, "Even with recent home price gains and rock-bottom interest rates, American households are not cashing out equity at rates we've seen historically."
From "The Refi Boom Is Officially Over -- And Won't Return Soon"
American Banker (08/13/14) Finkelstein, Brad
A year after other economists made the same call, Freddie Mac has declared an official end to the refinancing boom that kicked off in the third quarter of 2008. The company determines the termination of a refi boom based on when purchase loans make up 50 percent or more of all mortgage applications. The threshold was reached the week of May 8 this year. Although refi volume has since crept back up, Freddie Mac chief economist Frank Nothaft acknowledges, "Even with recent home price gains and rock-bottom interest rates, American households are not cashing out equity at rates we've seen historically."
From "The Refi Boom Is Officially Over -- And Won't Return Soon"
American Banker (08/13/14) Finkelstein, Brad
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