Refi's off 447 billion in Q4, of 03.

[junker]

Nice article.

Extract here then link.

Now, according to Greenspan mortgage refinancing played an important role in last year's buoyant economic growth. (How in the world can credit, which is not backed-up by real savings, generate economic growth?) Mortgage refinancing on account of the Fed’s low interest rate policy, according to Greenspan, permitted consumers to boost their expenditures and thus the pace of GDP. (Note that this increase in consumption has led to the depletion of the pool of investable resources).

However, there are currently strong indications that this source of "funding" is fading rather rapidly. After climbing to a record high of $723 billion in Q3 mortgage refinancing plunged to $276 billion in Q4. Note that this fall took place despite low mortgage interest rates.

http://www.mises.org/fullstory.asp?control=1454


also note that mortgage brokers are going bust all up and down the west coast. Layoffs locally are about 30% of the peak employment of last summer.

[wryter2000]

1. I know

Greenspan will just have to lower the prime again to create more refi business. I suggest -2%. (That's how in touch with reality he is lately.)