Posted by Shane_OH on 3/14/06 8:05pm
Msg #104996

Market Trend - My Take...

I am seeing a lot less purchases, a little less on the refi side....

BUT, I am seeing a TON of HELOC's.... I think about 5 years ago we had this trend too, where everyone jumped on the equity line band-wagon, and then ended up refinancing 3 years later....

Just my take, but maybe we are in the cycle again?

Reply by JanetK_CA on 3/14/06 8:21pm
Msg #105005

Shane, I'm sure lots of what we are seeing are cyclical trends. I suspect, however, that different parts of the country are going through trends at different rates and different times. With the unbelievable increases in property values and equity that we've seen in Southern California over the last couple of years, we've already seen tons of HELOCs and people pulling out equity. Not surprising to hear of it happening elsewhere.

I hope you're right, but keep in mind, that 2 - 5 years ago, interest rates were on the way down. I suppose there's a good possibility, though, that as the fixed rate period expires for all those with ARMs, they will think about refinancing again. The latest thing I'm seeing is people increasing the credit limit on their existing HELOCs.