What We're Hearing

The net worth position of Americans rose 5% to $53.4 trillion in the third quarter, according to newly released figures from the Federal Reserve Board. Included in that net worth number is the value of residential real estate -- houses. Even though the increase is good news for the economy it is far below the peak $64.5 trillion number posted before the recession started. Then again, it can be argued that perhaps the earlier number was inflated by the housing bubble -- and the evilest mortgage of all time, the payment option ARM. One mortgage sector that is not likely to recover any time soon is the "cash-out" refinancing business. Many lenders are no longer making these loans unless there is substantial equity in the house. Meanwhile, new figures compiled by National Mortgage News and the Quarterly Data Report show that 91% of mortgages originated in the third quarter were fixed rate...