Though lenders are suddenly scampering for business, the home building boom is continuing, with new home sales on the rise and most builders enjoying a backlog of housing orders.

Forrest Pafenberg, director of real estate finance research for the National Association of Realtors, said that lenders are seeing the market in an entirely different light than builders. He said home purchases remain strong for lenders and builders alike but the demand for loans to refinance, which accounted for about half of the $1.5 trillion of loan volume last year, has suddenly dried up.

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