Can you say, Stagflation?

Doug Henwood dhenwood at panix.com
Fri Sep 6 10:30:35 PDT 2002


Ian Murray wrote:


>Aren't lots of folks just refinancing at lower rates and thus
>dumping some debt
>even as the value of their homes has gone up since the last time they
>refinanced?

Most of the refinancings involve taking cash out of equity - around $150 billion last year and somewhere in that neighborhood this year. The lower interest rate itself frees up surprisingly little cash. Mortgage debt is rising smartly.

Doug



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