The paper shows that bank interest rates have been steadily decreasing since the September 11th attack on America and that
the attack caused the business failures of major corporations, such as World Com and Enron. It discusses that one of the areas that are going stronger then ever is the real estate industry and many homeowners are taking the option to refinance their homes. The paper shows that banks and financial institutions are not in favor of this procedure as a homeowner who
refinances his house may lower his monthly
payments several hundred dollars - banks are making significantly less money on the lowered monthly payments through refinances. The purpose of the essay is to discuss how the lowered interest rates are affecting the housing industry.