Mortgage rates What experts say
Many real estate analysts have called the flurry of mortgage refinancing activity a "mini boom. " They claim the boom would be bigger, if it were not for decreases in home values and stricter lending standards. Value decreases have caused decreases in homeowner equity, and in some cases homeowners now own so little equity that they are not eligible for mortgage refinancing. In Ventura County in California, for example, it is estimated that of the properties purchased there within the last five years, about 40 percent are now worth less than their purchase prices. Other homeowners who may have been approved for mortgage refinancing just a year ago may not have a high enough credit score to qualify under the new lending practices.