Economic Stimulus Not a Silver Bullet

"56% of Freddie Mac-owned loans were cash-out refinances in the first quarter of 2008, the smallest percentage since Q2 in 2004, the GSE said Friday. First quarter’s share compares starkly to the 77% share of refinancing posted just one quarter earlier, and underscores the new reality for most homeowners. “A tightening of mortgage underwriting standards throughout the lending industry coupled with declining home values across much of the nation has curtailed the amount of home equity cashed out by homeowners,” said Frank Nothaft, Freddie Mac vice president and chief economist. "