Although one might expect the general rise in long-term mortgage rates (up over 100 basis points since the beginning of the year) to have dampened the demand for new home loans, mortgage originations have exhibited steady, if unspectacular, growth over the last several months. By contrast, mortgage refinancing activity has responded dramatically to the rate increase, dropping 70% since the beginning of the year.
Suggested citation: “Housing Finance,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-09, pp. 17, 09.01.1996.