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Article: Journal Daily.
- Article from:
- Banking Wire
- Article date:
- January 28, 2003
CopyrightCOPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mortgage Refi's Prop Up Economy
WEST CHESTER, Pa.-A new study suggests that the boom in mortgage refinancing which prompted trillions of dollars in new loans accounted for as much as 20% of the growth in gross domestic product in the past two years.
"It is important to realize that the refinancing boom has been instrumental in keeping the economy together as long as it has been together," said Mark Zandi, chief economist at economy.com. About $1.2 trillion of mortgages were refinanced last year, and experts say this year's tally will be $1.25 trillion to $1.4 trillion. But the refinancing boom "will eventually wane, and we can't continue to ...