While applications may be at historic levels, it does not necessarily mean that they are closing - or even getting past the appraisal and credit report stage.  That said, we are seeing some signs of life in the refi market.

I had a conversation with a processor from one of the major lenders a couple of weeks ago.  They were buried under applications.  I asked if the new government programs for first time buyers and saving distressed mortgages from foreclosure was a big factor.  I was surprised to be told that, no, it was all straight rate-based refinance application.  Still, home values were keeping many from going anywhere.

With all of the incentives for first time home buyers, I would have thought the lenders would be buried under purchase loans.  If that would kick into high gear, we might see some stabilization of home values.  Then, perhaps a greater percentage of the applications will actually reach the point where somebody needs a title search.