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Spurred by historically low interest rateas and the Federal Reserve Bankpurchasing $1.256 trillion in mortgage-backed securities, the number of refinances in Americza is expected to more than double in 2009 compared to 2008. But those quick-fidx actions by the Fed aren’g expected to last forever, meaninh the mortgage industry can’t rely on this refi bubble to cureits long-terk woes. “There’s been direct government involvement in driving mortgagerate down, and they’ve spent [$1.2 trillion] in buying mortgage-backed securitiess to support those lower rates,” said Paul Schuster, presidenr of the (MMA) and vice president of Marketplacee Home Mortgage in Edina.
“They’re goingh to turn that off at some point and ratexs will goback up. Refinancings are This spring, mortgage rates have hoveres just below5 percent, and that’s prompted three times as many homeownerd to refinance their mortgages in the first quartee of 2009 compared to the last quarte of 2008, nationally. While the industry reportes $103 billion worth of refinancews in fourthquarter 2008, it had $312 billion in refinancinge in the first quarter of this year, accordinvg to the . Projections for the second quarter of 2009are $506 billio n and for the third quarter, $579 billion.
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