Let's get ready to rumble!!!
The spike of mortgage refinancings will not stimulate the economy because the ony people who can refinance now are the responsible ones. They are simply refinancing to lower their rate. (A very smart move since 30 mortgage rates are the lowest they've ever been).
These folks however, aren't using the extra saving to buy new cars or tv's, etc. Like I said, these are the responsible people. The rest can't take advantage of the low rates because they either don't qualify or are still underwater on their current mortgage. (Of course these are the same folks who bought new cars and tv's and things the last time they refinanced).
So....Look out below!!!! Let's get ready to rumble!!! My bet is on the bear!
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