The “Great Refi Boom” of 2009? A Must Read!
Posted on | January 8, 2009 | 12 Comments
Market pundits and analysts appearing on the financial networks have been calling for the “Great Refi Boom” of 2009 due to the fact that rates have dropped below 5%. While this sounds great, it is just not true. The mortgage application data is greatly swayed as described in the article The Government Hyping Mortgage Application Data? You Won’t Believe This! Even if the application data was an accurate depiction of the current housing market, many of the applications are not receiving funding. The “Great Refi Boom” of 2009, likely, will not happen!
Market psychology is one of the most important aspects in getting a bear market out of hibernation. Convincing Americans that things are really not as bad as they seem is over half the battle. The government is doing everything possible to make citizens feel that the housing bull is back and ready to run which will ultimately lead to a strong economy in the long run. Any logical individual will realize that this is just not the case right now. Today, retailers posted the worst December sales in over FOUR decades! If retailers, including Wal-Mart, are not making any money then it is highly unlikely that we are anywhere close to getting out of this mortgage and credit crisis.
The end of this crisis will come when the headlines read “do NOT buy a home right now!” When everyone feels that it can never get better, that is the time to jump in head first and start investing in the housing market again. Bull markets begin in the depths of a bear market that has been beaten down for years and the psychology is that we will never see the end of these troubled times. Sadly, that has yet to come as analysts are stating that we are in a “great refi boom.” If they actually knew better, they would say the exact opposite.
Related Posts:
Mortgage Rates Will Continue Lower, But…
Refi Laboratory: A Common Man’s Pursuit of the Ultimate Mortgage
The ENTIRE Mortgage Market Collapse of 09
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12 Responses to “The “Great Refi Boom” of 2009? A Must Read!”
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January 9th, 2009 @ 7:23 pm
[...] The “Great Refi Boom” of 09? A Must Read! [...]
January 15th, 2009 @ 12:22 pm
[...] HSBC was the first bank in Europe to report a possible Subprime Crisis in the United States. Since then, worldwide financial institutes have been forced to raise more than $800 billion. The HSBC Subprime division has greatly hindered this company, but at least they have not been forced to be bailed out or even file bankruptcy like several other global subprime financial players. [...]
February 16th, 2009 @ 3:28 pm
[...] this sounds wonderful, it is not going to cause a refi boom. Many of the homeowners who were ineligible before will remain ineligible due to the subprime [...]
March 4th, 2009 @ 8:57 pm
[...] are refinancing at lower rates, but the so called “refi boom” is likely not going to happen because home prices have decreased in value. In more words [...]
March 11th, 2009 @ 6:18 am
Obama was part of the cause of this mortgage crisis. As attorney at ACORN, he pushed these mortgages for people who should not have taken them. They have drained the banks dry. Now we pay andhe lords of America.
March 12th, 2009 @ 8:35 pm
[...] “Great Refi Boom” has been greatly hindered by current appraisal values of homes. The lending process comes [...]
March 19th, 2009 @ 7:52 am
[...] few weeks as everyone who considered a refi in the past is sure to do it now, possibly causing a refi boom. There will also be an influx of interest from new home buyers. Ultimately, the interest from [...]
August 19th, 2009 @ 4:10 pm
[...] we do see overall interest rates get this low, we are likely to see the refi boom that everyone was calling for back in January. For some reason 5% is a barrier that many home [...]
August 20th, 2009 @ 12:51 am
[...] we do see overall interest rates get this low, we are likely to see the refi boom that everyone was calling for back in January. For some reason 5% is a barrier that many home [...]
August 24th, 2009 @ 4:46 pm
[...] move in a strong direction to break this trend. If it is to the downside, we could see a huge refi boom. If it is to the upside, we could see another slide in home prices. Only time will [...]
August 24th, 2009 @ 11:15 pm
[...] move in a strong direction to break this trend. If it is to the downside, we could see a huge refi boom. If it is to the upside, we could see another slide in home prices. Only time will [...]
September 3rd, 2009 @ 6:23 am
[...] and mortgage interest rates are flirting with 5%. The only issue that may arise is the fact that everyone will want to refinance their homes at these low mortgage rates. Stay ahead of the crowd and have [...]