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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tito L. Nisperos Jr. who wrote (50893)	8/21/2001 2:10:57 PM
From: advocatedevil	Read Replies (1) \| Respond to of 70976

FWIW, I just initiated an AMAT short-term short play here at $43.60. AdvocateDevil

To: Tito L. Nisperos Jr. who wrote (50893)	8/21/2001 2:11:59 PM
From: michael97123	Read Replies (1) \| Respond to of 70976

Think of all the refinancing and the subsequent purchasing and perhaps even investing if mortgage rates move toward 5-5 1/2%. Tuesday August 21, 1:37 pm Eastern Time More homeowners taking cash out of mortgage refinancing WASHINGTON, Aug 21 (Reuters) - In a trend that has helped buoy the flailing U.S. economy, the number of homeowners who walk away from mortgage refinancing with cash to spend rose in the second quarter of 2001, mortgage finance company Freddie Mac said on Tuesday. -------------------------------------------------------------------------------- With interest rates low and home values climbing to record levels, the trend of ``cash-out'' mortgage refinancing has allowed the healthy housing market to fuel consumer spending, analysts say. In spite of the slowing of the U.S. economy to a near-standstill, home sales and construction have remained robust and have been a bulwark against recession. ``Many borrowers find they can also tap into their equity while not raising substantially the cost of their monthly payments, making it seem even more desirable to refinance,'' said Freddie Mac economist Vassilis Lekkas. Of loans that were refinanced in the three months ending June 30, 57 percent took five percent or more of the equity of their homes, Freddie Mac said in a statement. That compares with 52 percent of refinancings taking cash out of home value in the first quarter. Falling mortgage rates are sustaining the refinancing boom, Lekkas said. The national average for a 30-year fixed rate mortgage fell below 7 percent last week for the first time since March. The rate of refinancing has skyrocketed from a year ago, Freddie Mac said. Currently 50 percent of mortgage originations are refinances, a Freddie Mac spokeswoman said. A year ago, when the 30-year mortgage was over 8 percent, only 15 percent of originations were refinances, she said. As a result, the rate of cash-out refinances was higher a year ago -- 81 percent of refinances took cash out of the value of the home in the second quarter of last year. That is because extracting cash, not taking advantage of low rates, would have been the main reason to refinance, the spokeswoman said. Email this story -