After yesterday’s expected news about sharply reduced activity in the re-sale of existing homes (the aftermath of the end to the buyers tax credit), it was announced  that mortgage applications rose last week as record low rates lifted demand for home refinancing loans to its highest level in over 15 months, a development that could provide a much-needed jolt to the economy.

Home loan refinancing puts extra cash into consumers’ hands that they can save, use to pay off existing debt or funnel into the economy through extra spending.

To-day we await the figures for the sale of NEW homes. “We are finding in Manhattan an increased demand for new homes that do not require renovation, and we are also seeing owners of existing homes more reluctant to sell right now, happy to wait the market out if they do want to sell,” says Leonard Steinberg, managing director of Prudential Douglas Elliman and leader of the LUXURYLOFT team.