Housing Boom Over?
With refinancing applications slumping more than 20 percent recently—and down nearly 80 percent from their all-time peak—some economists are declaring the end of the refinancing boom that has fueled a struggling U.S. economy. Drew Matus, economist at Lehman Brothers, said the refinancing boom is definitely over. On Aug. 27, the Mortgage Bankers Association of America said its seasonally adjusted gauge for applications to refinance loans fell 21.3 percent to 2,169 for the week that ended Aug. 22. The index has fallen eight weeks in a row and is 78 percent below its record high of 9,977.8, set the last week of May. Mortgage rates have risen since mid-June from their 45-year low.
