Refinancing is likely to account for 23 -25% of loan origination activity even after interest rates start rising, according to Doug Duncan, the Mortgage Bankers Association of America's chief economist.Mr. Duncan told attendees at the association's servicing conference in New Orleans that this will likely come as a surprise to many lenders as in the past refis have only reached level around 17%-18% in a rising rate scenario. He attributed to this to changing mortgage market dynamics that include an increase in cash-out refinance loans. The MBA can be found online at http://www.mbaa.org.
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