Lower rates may not create a surge in mortgage activity - because the banks have cut too much staff!!

[w¡n9Nµ7 §£@¥€r 123]

This mortgage thingy sucks, my condo has droped 300K in the last several months

300k????????????

Out of how much??

[w¡n9Nµ7 §£@¥€r 123]

(Reuters) - Veteran banking analyst Richard Bove said he expects housing prices in the United States to stabilize and/or rise after a likely boom in mortgage refinance, as mortgage rates fall and loan applications increase.

"It is quite likely that the country is about to enter a new mortgage refinance boom," the Ladenburg Thalmann analyst wrote in a note to clients.

"The Treasury and the Federal Reserve have created an environment which makes this development almost impossible to avoid," Bove said.

The take over of Fannie Mae (FNM.P) and Freddie Mac (FRE.P) in September, as well as Fed's plan last month to buy up to $600 billion in "agency" securities issued by Fannie, Freddie, Ginnie Mae and the Federal Home Loan Bank system have had "dramatic results," Bove said.

http://www.reuters.com/article/ousiv/idUSTRE4BN37420081224

[w¡n9Nµ7 §£@¥€r 123]

Bove said as mortgage rates tumble, refinancing applications are rising, and that some banks have begun to rehire some mortgage loan personnel they recently let go.

http://www.newsroomamerica.com/usa/story.php?id=441617