[Steven W.]

Mortgage rates reach record lows, people refinance and the amount of mortgages, obviously, goes up. I'd think a "conservative" magazine would cheer the free flow of commerce & real estate, but NO!

[Middle Man]

Part of the bigger problem is that there appears to be no end of capital available so people can go further into debt. And we Americans save little (or none) and spend much.

[NorCoGOP]

Mortgage rates reach record lows, people refinance and the amount of mortgages, obviously, goes up.

What I see, (I am a broker) - there is something to be potentially concerned about - lots of people refinanced, which does not necessarily mean the amount goes up, but, lots of those people took cash out from equity, or, took out 2nd mortgages - that's where the value in mortgages really have increased.

Property values are not growing at the pace they were even six months ago, and, in certain high-end neighborhoods in northern Colorado, they are coming down.

If the downward trend for whatever reason picks up steam, so ALL values start coming down, people will be in REAL trouble...especially those that right now are mortgaged to 100% value on their homes. IF (big if), values do drop - people will owe more than homes are worth, and will be unable to sell...starting a possible foreclosure wave.

Best bet - keep under 80% loan to value if you can - it gives you (1) flexibility and (2) avoids pesky mortgage insurance.

[ARCADIA]

cheer the free flow of commerce

What free flow of commerce?

We are talking about a distortion which uses a publically subsidized program to generate consumer spending. It is a perversion of a program designed to increase our stock of affordable housing. At the end of the day we will max out our ability to barrow and the housing boom will go burst. Consumer spending will drop along with housing values, and tax payers will be saddled with an incredibly massive bailout of our financial institutions. This thing will make the savings and loan bailout look like a parking ticket.

[FITZ]

Mortgage rates reach record lows, people refinance and the amount of mortgages, obviously, goes up.

That would depend on why they refinanced. If I owe $80,000 with an interest rate of 9% and I refinance to get a lower interest rate of 5%, I would still only owe $80,000. If people are refinancing to get out cash then they're doing the opposite of investing, and if they're buying foreign made products it only hurts our economy by adding to a very large trade deficit that is being purchased with debt.