WSJ.com is reporting that mortgage apps have surged -- what do you think this means for housing prices in '09?

readytoretire answered 11 months ago …

The surge is in refinancing. New applications was about equal to the rate of December 2007, but refinancing rate was almost 2 1/2 times last years rate, so the boom is in existing home owners. The upside of that is that the banks will generate some money off of processing the loans. The new loans will also be fairly secure, as they will be based on a current appraisal, current income, etc. So they should not have the question like so many of the other loans on the books have. With these homeowners staying put, it will stop that portion of houses entering the market, so it will have some stablizing effect.