Summary
Refinancings - Brief Article
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Extract
REFI Ripple Effects.
We see the early signs of a big origination boom in 2001. Refinancings surged dramatically in January, leading many to believe this year might rival the record set in 1998--the last refi boom year.
COMING INTO 2001, THE MORTGAGE ORIGINATION MARKET HAD THE LOOK AND FEEL OF A FREIGHT TRAIN ROARING DOWN A MOUNTAINSIDE. Even before the Federal Reserve's first dramatic interest rate cut in January, the sleepy origination market began shifting into higher gear. As many lenders will testify, the last three months of 2000 made the whole year--or at least gave it some measure of respectability. When the Fed loosened again in late January, you could almost hear lenders whooping with glee. Long into the new year, lenders had visions of sugarplums dancing in their heads. This year, they were saying to themselves, could be as great as that legendary year of 1998, when low rates and a hot economy kicked the refinance market into top speed and all sorts of origination records were set. Well, refis are back, business is building and the only question at this po...See the full content of this document
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