But perhaps we should also look into the contingency aspects of these companies and why they have failed to remain in business under the current economic situation.

In a good economy, primarily in a real estate “boom”, anybody can sell real estate; while in a “crunch” economy, only those that plan and prepare for “difficult times” are the ones to remain strong and endure. They will become stronger when this economic cycle fulfills its term and moves into its next cycle.

So let me give you some statistics and let you be the judge:

Declaring "good news" in the midst of an economic meltdown, President Barack Obama made an announcement and urged families to take advantage of near-record low mortgage rates by refinancing their home loans. "We are at a time where people can really take advantage of this," Obama said, seated with a handful of homeowners who have already lowered their bills.

Rates on 30-year mortgages inched upward this week but remain near the lowest level in decades, allowing borrowers with strong credit and stable jobs to save money if they refinance.

The average rate on a 30-year fixed-rate mortgage rose to 4.87 percent this week, up from 4.78 percent last week, Freddie Mac (FRE - news - people) reported. That was the lowest in the history of the survey, which dates back to 1971.

Low rates have sparked a surge in refinancing activity, with nearly 80 percent of new home loan applications coming from borrowers seeking to refinance. Freddie Mac's sibling company, Fannie Mae (FNM - news - people), refinanced $77 billion in loans last month, which is nearly double February's volume.

Final del formulario "The main message we want to send out today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates," Obama said. "That is money in their pocket."

In recent weeks nearly 200,000 homeowners have contacted Bank of America ( BAC - news - people ) to find out if they are eligible to refinance under the Obama administration's new guidelines, said Vijay Lala, the bank's product management executive. "We've seen a tremendous amount of interest."

The worst of the recession is likely behind us, some editorials say, but the economy still faces numerous hurdles. The economy is still hemorrhaging jobs, and until the labor market begins to stabilize, the improvement in consumer spending and housing will be in jeopardy.

Other positive developments over the past weeks include a better tone in financial markets, changes to market-to-market accounting rules, and a slight improvement in consumer sentiment.

On the other hand, The Fed has committed to purchasing $300 billion in long-term Treasuries, or approximately $12 billion per week over the next six months. With the central bank operating a zero-interest rate policy, The Fed will use its balance sheet to lower long-term rates, hoping to bring mortgage costs down and boost aggregate demand.

There is already evidence of an increase in refinancing activity says The Mortgage Bankers Association. The weekly refinance index jumped 115% since the end of February and is near its highest level since 2003.

Financial market conditions have improved. The Dow Jones Industrial Average is up nearly 20% from its cycle low and the VIX remains within a very narrow range. Financial markets will be tested as earning season is near, and stress tests on the 19 largest U.S. banks are expected to be completed later this month. The results of these tests will provide additional information on the health of the banking industry and could set the mark for additional government funding. Already, the government has pledged more than $12 trillion to address the financial panic and recession.

The economic downturn remains intense, but it is no longer strengthening. The severity of the downturn is evident in the job market, while improved financial markets suggest the economy is no longer in free fall.

Many homeowners will also soon get an infusion of cash as they refinance and lower their monthly mortgage payments. If the Federal Reserve succeeds in bringing mortgage rates closer to 4.5%—which seems doable, given the central bank's massive purchases of Fannie and Freddie debt and mortgage securities—the current refinance wave will turn into a tsunami.

More than $3 trillion in mortgage loans are owned or insured by Fannie and Freddie, with coupons above 5%. These are good refinance candidates, particularly considering the administration's plan to allow Fannie and Freddie to refinance mortgages with loan-to-value ratios of 80% to 105%. Using some conservative assumptions, homeowners who refinance will be able to cut last year's mortgage payments by $25 billion in 2009.

Which scenario prevails depends on the collective psyche. The difference between a typical recession and the current downturn is the loss of faith in the economy. That investor sentiment has taken on a brighter tone in recent weeks and is thus encouraging. Investors don't always get it right, but with the massive monetary and fiscal stimulus taking hold, the dark cloud hanging over businesses and consumers should soon begin to lift and job losses fall.

Therefore, whether the glass is half full or half empty depends merely on how we look at things. As Don Ramon de Campoamor once said, “Y es que en el mundo traidor nada hay verdad ni mentira, todo es según el color del cristal con que se mira”. Which translates somewhat into; “Just because in our controversial world nothing is true or a lie, everything is the color of the crystal (glass) we look at it through”.

So draw your own conclusions. Is the world economy on a rebound? Or, are we still under a deep economic downturn, a deep recession? Let us know what you think.

This article is provided by Enrique (Henry) Saldana – Mexico Mortgage Solutions (in Mexico)/Advanced Mortgage Corp. (in the USA) Cel: (984) 116-8528; Cell: (998) 147-8936 This e-mail address is being protected from spambots. You need JavaScript enabled to view it or www.mxmortgagesolutions.com ; You may contact us with any questions you might have with regards to Mortgages in Mexico.

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