A problem and a potential good......The value of the homes that are being refi'ed have gone down.....To cover the present mortgage, most refi loans will be within that +80% zone. Many will not refi because of that, those that have to, will have to PMI.
Just as a side bar, I have been in here since Dec 2007, and accumulating all of 2008. Not looking so right, right now, but I feel strong long term. Bring it on shorty!