Lower refinancing can dampen economic recovery – Fed research


An unwillingness or an inability among households to refinance mortgages can dampen an economic recovery, research published by the Federal Reserve finds.

US mortgage refinancing, or “equity extraction”, has fallen from an average of roughly $60 billion per quarter in the 2000s to around $30 billion per quarter since the 2008 financial crisis, Aditya Aladangady and Kelsey O’Flaherty show.

“We estimate that the lower rate of equity extraction lowered annual aggregate spending by about $45

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: