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But some lenders say the increase in refinancing still fails to reflect the current low rates.
Centex shares were down over 5%, The Mortgage Bankers Association's weekly measure of loan applications climbed 4.7% in the latest reading, and its purchase index jumped 11.1%, compared to just a 3.2% increase in refinancing.
The Mortgage Bankers Association of America said overall applications rose 16.9%, led by a 27.8% increase in refinancing applications.
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It was the largest increase in refinance applications in the survey's 18-year history, though it does not measure how many applications become loans.
"Since the Fed announced they would buy mortgage-backed securities, we have seen a pretty healthy increase in refinance applications, while purchase applications have trended up, but not as significantly," said Orawin Velz, the Mortgage Bankers Association's vice president for economic forecasting.
Mr. Obama has not been as aggressive as we would have liked in addressing the housing crisis, but he has increased efforts in refinancing and loan modifications.
So if you're being financially rational, you could conclude that the PFI framework can be improved – the public sector might want to share a bit more in the upside, for example, through increased sharing in refinancing gains.
Among other recommendations, the Community Service Society called for federal funding to increase the subsidy for projects in areas in which the real estate market is hot, state help in refinancing mortgages, and improved tenant protections.
In refinancing booms, loans don't last for seven years.
A sustained rise in consumer sentiment, along with lower energy costs and an increase in home refinancing, could help spur consumer purchases, giving the economy a lift.
This past month, the 30% increase in mortgage refinancing demonstrated that working families are benefiting from the savings due to these lower rates.
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