Despite the Federal Reserve Board's latest attempts to stimulate the housing market, home lenders are keeping rates artificially high to control the volume of refinancing applications.

The industry is struggling with capacity constraints, including the disappearance of warehouse lines and lower staffing levels as a result of layoffs last year and in 2007. Many lenders are holding off on hiring out of concern that the current refi wave, which began in December and crested in January, may not last much longer.

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