“Lenders extended $700 billion of home loans in the July-to-September quarter, the most in 14 years, according to industry research group Inside Mortgage Finance,” as was reported in a recent Wall Street Journal article. The authors suggest that the spike in home loans is due to falling mortgage interest rates. Many homeowners have taken advantage of the low rates by refinancing their home loans. In addition, home sales have risen on an annual basis, but not as much as expected, possibly due to the lead time it takes to find and close on a home once someone has decided to take advantage of the low rates and actually buy a home. For more analysis on the causes and effects of falling mortgage rates, click here.