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It is actually refreshing when you type, but to avoid refreshing every single key press which could take a long time in bigger documents, it has a delay. The issue here is with quickly typing the same search string that was already there. If the string hasn't changed, it doesn't re-search, I would would probably call this a bug.
Ah, I just tested this and see that that is what is happening now. I did notice it did seem to work once in a while if I typed slow but I thought I was imagining things, hehe.