by Calculated Risk on 11/14/2005 12:21:00 AM

My most recent post is up on Angry Bear, Housing: "With a pfffffffft or a fizzle"

On equity extraction, Freddie Mac reported on Nov 1st: CASH-OUT REFINANCE ACTIVITY STRONG IN THIRD QUARTER 2005

"Refinancing activity was strong in the third quarter, even with higher interest rates with 44 percent of new mortgage applications being submitted for refis," said Amy Crews Cutts, Freddie Mac deputy chief economist. "The large share of borrowers who took cash out when refinancing their mortgages combined with the strong overall refinance volume led to an extraction of home equity through prime first-lien refinances of $60.4 billion, almost equal to the revised estimate of $60.7 billion extracted in the second quarter. With the expectation that mortgage rates will rise further in the fourth quarter, refinance volumes overall should slow but cash-out refis will continue to be in demand, and equity extraction through refinance should hit over $200 billion this year, falling to about $114 billion in 2006."

So far equity extraction remains strong.