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

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