from bloomberg this morning

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    U.S. Economy: Refinancings Rise as Confidence Wanes
    Washington: U.S. homeowners last week filed the most applications in a decade to refinance mortgages. Signs they are less willing to spend the extra cash may point to trouble for the economy at a time when it needs help the most.
    ``The refinancing boom isn't going to be as powerful a force for the economy as it has been,'' said Richard DeKaser, chief economist at National City Corp. in Cleveland.
    People may be using the money released by taking out new loans to pay off other debts, or to increase savings. A survey released this week showed just one in five homeowners plans to spend the proceeds from refinanced mortgages. A slowdown in consumer spending, which accounts for two-thirds of the economy, would sap a recovery that is losing momentum.
    The Mortgage Bankers Association of America's index for applications to refinance mortgages rose 3.8 percent last week to 6926.9, the highest since the group began keeping records in 1990. Separately, an ABC/Money Magazine index of consumer confidence in the economy fell to minus 46, the lowest since January 1994.
    have a great day
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